Question
A company has two employees, Employee A and Employee B.
Employee A earns 180,000 annually, and Employee B earns 210,000 annually. If Employee A’s salary is increased by 10% and Employee B’s salary is increased by 7%, what is the new average monthly salary of the two employees?Solution
Monthly earning of Employee A = 180,000 / 12 = 15,000 Monthly earning of Employee B = 210,000 / 12 = 17,500 After a 10% increase, the earning of Employee A = 110% of 15,000 = 16,500 After a 7% increase, the earning of Employee B = 107% of 17,500 = 18,725 New average monthly salary = (16,500 + 18,725) / 2 = 35,225 / 2 = 17,612.5
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