There are two employees X and Y. X's salary is first increased by 12% and then decreased by 10%, and Y's salary is first increased by 10% and then decreased by 12%. If their salaries at present are equal, then what was the ratio of initial salary of X to initial salary of Y?

  1. A. 50: 53
  2. B. 51: 53
  3. C. 121: 126
  4. D. 121: 125

Correct Answer: C. 121: 126

Explanation

Let initial salaries be x and y. Present salary of X = x \times 1.12 \times 0.9 = 1.008x. Present salary of Y = y \times 1.10 \times 0.88 = 0.968y. Since 1.008x = 0.968y, the ratio \frac{x}{y} = \frac{0.968}{1.008} = \frac{968}{1008} = \frac{121}{126}.

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