An employer reduces the number of his employees in the ratio of 8 : 7 and increases their wages in the ratio of 15 : 16. If the original wage bill was Rs. 16400. Find the ratio in which the wage bill is decreased.
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$15 : 14$
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$17 : 19$
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$21 : 20$
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$20 : 21$
A
Correct answer
Explanation
Original wage bill = 16400. Employees ratio 8:7 means 7/8 of original workforce. Wages ratio 15:16 means new wages are 16/15 of original. New wage bill = 16400 × (7/8) × (16/15) = 16400 × (112/120) = 15600. Ratio = 15600:16400 = 15.6:16.4. When simplified and expressed as reduced:original, this gives 15:14 (approximately).