The sum of the weekly salaries of 5 employees is $3,250...

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Last Updated on May 11, 2023

GMAT OFFICIAL GUIDE PS

Solution:

The original average salary is 3,250/5 = 650.

If each of the 5 salaries will increase by 10%, the new sum of the salaries will also increase by 10%. Thus, the new sum is:

0.1 x 3,250 + 3,250 = 325 + 3,250 = 3,575

Thus, the new average salary is 3575/5 = 715 and each salary increases by 715 – 650 = $65.

Alternate Solution:

If each of the salaries is increased by 10%, then the average salary will increase by 10% as well. The original average salary is 3,250/5 = 650. Thus, a 10% salary increase is 650 x 0.10 = 65 per person.
Answer: E

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