Out of 30 employees of an office, 5 are retired this year 10 got a hike of 25% and the remaining 15 had the same pay as before. If the retired employees got the same pay as pension and the initial salary of each employee was 20000 per month what is the new expenditure of the company in relation to employee’s salaries?

Correct Answer: 6,50,000
Pension of the retired employees = 5 * 20000 = 1,00,000 per month in total Total salary of the employees with raise = 20000 + 25% of 20000 = 20000 + 25 * 20000 / 100 = 20000 + 5000 = 25000. 25000 * 10 = 2,50,000 in total Salaries of the employees with no raise = 20000 * 15 = 3,00,000 in total Total expenditure of the company = 1,00,000 + 2,50,000 + 3,00,000 = 6,50,000