Question
The salary of an employee is increased by 6% every year.
If the present salary is ₹60,000 per month, what will be the salary after 2 years?Solution
ATQ,
If there is successive increase of ‘a%’ and ‘b%’ on a certain quantity/value, then the net percentage increase = a% + b% + [(a × b)/100]%
So, the net percentage increase = 6% + 6% + [(6 × 6)/100]%
= 12% + (36/100)% = 12% + 0.36% = 12.36%
So, the salary after 2 years = 1.1236 × 60000 = ₹67,416
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