Salary of a person decreases by 10% every year and his bonus increases by 24% every year. If his salary and bonus at the end of 2020 were 8000 and 2500 respectively, find the difference between his total earnings in March 2020 and March 2022.
A165, increases
B176, increases
C180, decreases
D176, decreases ✓ Correct
Correct answer: (D) 176, decreases
Explanation
The total earnings fall by 176.
Start with salary 8000 and bonus 2500, total 10500.
After 2 years salary = 8000 x 0.9 x 0.9 = 6480.
After 2 years bonus = 2500 x 1.24 x 1.24 = 3844.
New total = 6480 + 3844 = 10324.
Difference = 10500 - 10324 = 176, a decrease.
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