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X's salary is 50% more than Y's. If Y's salary increases by 10% and X's salary increases by k%, then X's new salary becomes 40% more than Y's new salary. What is the approximate value of k?

1. 2.67%
2. 3.50%
3. 4.20%
4. 5.10%

Correct answer: 2.67%

Solution

Let Y = 100, so X = 150. After increase, Y becomes 110 and X becomes 150(1 + k/100). Given X's new salary is 40% more than Y's new salary, X = 1.4 × 110 = 154. So 150(1 + k/100) = 154, giving k = 2.67% approximately.

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