To build a house at a faster pace, the contractor increases the wages/ hour of e

Question

To build a house at a faster pace, the contractor increases the wages/ hour of each worker by

20 %

and the working hours by

25 %

. By how much percent has the daily earnings of each labourer increased?

Options:

A . 20%

B . 25%

C . 30%

D . 50%

Answer: Option D
:
D
Solve using assumption
Lets say the number of hours / day initially = 10 and the wages = Rs 100 for 10 hours
Wages / hour =

\frac{100}{10}

= 10/hr
Earnings initially = 100 for 10 hours
New wages =

1.2 \times 10

= 12 / hr
New number of hours =

1.25 \times 10

= 12.5 hours
New earnings =

12 \times 12.5

= 150

%

change

= \frac{50}{100} \times 100 = 50 %

, Option (4).
2nd method:-

W a g e s (w) = n o . o f h o u r s (h) \times w a g e s / h o u r (p)

\frac{W_{2}}{W_{1}} = \frac{h_{2} \times p_{2}}{h_{1} \times p_{1}} = \frac{1.25 h_{1} \times 1.2 p_{1}}{h_{1} \times p_{1}} = 1.2 \times 1.25 = 1.5

F.O.M = 1.5 i.e

%

increase =

50 %

. Option (4) .

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