Question: The salaries of three friends Sita, Gita and Mita are initially in the ratio 5 : 6 : 7, respectively. In the first year, they get salary hikes of 20%, 25% and 20%, respectively. In the second year, Sita and Mita get salary hikes of 40% and 25%, respectively, and the salary of Gita becomes equal to the mean salary of the three friends. The salary hike of Gita in the second year is
Let the initial salaries of A, B and C be 5x, 6x and 7x respectively.
Salary of A increases by 20% and then by 40%.
∴ Salary of A after 2 years = 5x × 1.2 × 1.4 = 8.4x
Salary of C increases by 20% and then by 25%.
∴ Salary of C after 2 years = 7x × 1.2 × 1.25 = 10.5x
At the end of 2 years, B's salary is average of all three, hence B's salary will also be average of salaries of A and C.
⇒ Salary of B after 2 years = (8.4x + 10.5x)/2 = 9.45
Hence, option (a).