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

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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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