Ram received an annual salary of ₹48,580 in the year 2008. This was 25% more than his salary in 2007. What was his salary in 2007?

Correct option is D

Given:

Annual salary of Ram = ₹48,580

Increase in salary from previous year = 25%

Formula Used:

Increase in Value = $$\frac{Percent Increase}{100} \times Original \ Value$$​​

Solution:

Let the salary previous year be x

Then increase in salary = 25% of x = 0.25x

Total increased salary = x + 0.25x = 1.25x

1.25x = 48580

​$$x= \frac{48580}{1.25} = ₹38,864$$​​

Alternative Method:

Final Value =$$Initial\ Value \left(\frac{1 + Increase\% }{100}\right)$$​​

48580 =$$Previous \ Salary \left(\frac{1 + 25\% }{100}\right)$$​​

Previous Salary = $$48580 \left(\frac{100}{125}\right) = ₹38,864$$​​