PPSC Excise and Taxation Inspector 2018 Question Paper

Practice Mode:
46.

The Salary of an employee of a company increases evert month by 4%. If his Salary in August was Rs. 6300, then what would be his approximate salary in month of October of the Same year?

A: Rs. 6552
B: Rs. 6967
C: Rs. 6814
D: Rs. 6627

The answer is: C

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Explanation

Answer: C - Rs. 6814

Step by step calculation:

The salary increases by 4% every month.

August salary = Rs. 6300

September salary (August + 4%): 6300 × 1.04 = Rs. 6552

October salary (September + 4%): 6552 × 1.04 = Rs. 6814.08 ≈ Rs. 6814

 

The key concept being tested:

  • This is compound growth, not simple addition
  • Each month's 4% is applied on the new salary, not the original
  • August → September → October = 2 months of growth