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

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

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The sum of the weekly salaries of 5 employees is $3,250. If each of the 5 salaries is to increase by 10 percent, then the average (arithmetic mean) weekly salary per employee will increase by

A. $52.50
B. $55.00
C. $57.50
D. $62.50
E. $65.00

OA E

Source: Official Guide

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BTGmoderatorDC wrote:
The sum of the weekly salaries of 5 employees is $3,250. If each of the 5 salaries is to increase by 10 percent, then the average (arithmetic mean) weekly salary per employee will increase by

A. $52.50
B. $55.00
C. $57.50
D. $62.50
E. $65.00

OA E

Source: Official Guide
The original average salary is 3,250/5 = $650.

If each of the 5 salaries is to 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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scott@targettestprep.com



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BTGmoderatorDC wrote:
The sum of the weekly salaries of 5 employees is $3,250. If each of the 5 salaries is to increase by 10 percent, then the average (arithmetic mean) weekly salary per employee will increase by

A. $52.50
B. $55.00
C. $57.50
D. $62.50
E. $65.00
Since each salary increases by 10%, the sum increases by 10%.
10% of 3250 = 325.
Average increase per employee = (total increase)/(number of employees) = 325/5 = 65.

The correct answer is E.

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