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Salary of an officer increases every year by 20%. His salary in the year 2001 was Rs. 26640. What was his salary in 1999?

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Rs. 20, 000

Rs. 19, 028

Rs. 18, 500

Rs. 19, 528

answer is C.

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Detailed Solution

Given that, salary in 2001 = 26640
Let salary in 1999 = x The salary increased in 2000 with 20%
So, salary or 2000 = 120% of x.
Again, salary in 2001 is 20% of salary in 1999. Thus

120 % of (120 % of x) = 26640

\frac{120}{100} \times \frac{120}{100} \times x = 26640

1.44 \times x = 26640

x = \frac{26640}{1.44}

x = Rs . 18, 500

So, the salary in 1999 was Rs. 18500.
Correct option is 3.

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