Question

The median salaries of 3 B-Schools A, B and C are in the ratio 7:6:5 in the year 2019. The median salaries of these 3 B-schools are in the ratio 3:3:4 in the year 2020. If the median salary of A increased by 20% from 2019 to 2020, by what percent did the median salary of B increase?

• A. 40%
• B. 38%
• C. 18.5%
• D. None of these

Hint:

To calculate percentage increase, use the formula: \[ \text{Percentage increase} = \frac{\text{New value} - \text{Old value}}{\text{Old value}} \times 100 \]

Answer 1

The Correct Option is A

Let the median salary of B-schools A, B, and C in 2019 be:
- Salary of A = \( 7x \)
- Salary of B = \( 6x \)
- Salary of C = \( 5x \)
In 2020, the salaries are in the ratio 3:3:4, so let the median salaries of A, B, and C in 2020 be:
- Salary of A = \( 3y \)
- Salary of B = \( 3y \)
- Salary of C = \( 4y \)
We are told that A's salary increased by 20% from 2019 to 2020:
\[ 3y = 7x \times 1.2 \] \[ 3y = 8.4x \] \[ y = 2.8x \] Now, the salary of B in 2020 is \( 3y = 3 \times 2.8x = 8.4x \).
The salary of B in 2019 is \( 6x \), so the percentage increase in B's salary is:
\[ \frac{8.4x - 6x}{6x} \times 100 = \frac{2.4x}{6x} \times 100 = 40% \] Thus, the median salary of B increased by 40%.