A businessman
advertised two job openings for peons in his firm. Two men applied and the
business man decided to engage both of them. He offered them a salary of Rs.
2,000 per year; Rs. 1,000 to be paid every half year, with a promise that their
salary would be raised if their work proved satisfactory. They could have a
raise of Rs. 300 per year, or if they preferred Rs. 100 each half year.
The two men thought
for moments and then one of them expressed his wish to take the raise at Rs.
300 per year, while the other man said he would accept the half yearly increase
of Rs. 100.
Between the two men, who was the gainer, and by how much?
Answer: At a
raise of Rs. 300 per year:
1st year Rs. 1000+ Rs. 1000 = Rs. 2000
2nd year Rs.1150 + Rs. 1150 = Rs. 2300
3rd year Rs. 1300+ Rs. 1300 =Rs .2600
4th year Rs. 1450 + Rs. 1450 =Rs .2900
At a raise of Rs. 100 each half year;
1st year
Rs. 1000 + Rs. 1100 =Rs. 2100
2nd year Rs. 1200+ Rs. 1300 = Rs. 2500
3rd Year Rs. 1400 + Rs. 1500 = Rs. 2900
4th year Rs. 1600 + Rs. 1700 = Rs. 3300
Obviously the second proposition is much more lucrative.
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