Salary of a person decreases by 10% every year and his bonus increases by 24% every year. If his salary and bonuses at the end of 2020 were ₹8000 and ₹2500 respectively, find the difference between his total earning in March, 2020 and March 2022.

The correct option is ₹ 176, decrease.

Step-by-step Explanation:

Let us analyze the salary and bonus details of the person in the years 2020 and 2022 to find the difference in total earnings.

1. Earning in March, 2020:
The earnings at the end of the year 2020 represent the monthly rates applicable during the year 2020 (which includes March, 2020).
Salary in March, 2020 = ₹8,000
Bonus in March, 2020 = ₹2,500
Total Earning in March, 2020 = Salary + Bonus = ₹8,000 + ₹2,500 = ₹10,500

2. Earning in March, 2022 (after 2 years):
The salary decreases by 10% every year. Therefore, after 2 years (from 2020 to 2022), the salary is calculated as:

$${\text{Salary}}_{2022}=8000\times {(1-\frac{10}{100})}^2$$

$${\text{Salary}}_{2022}=8000\times {\left(0.9\right)}^2=8000\times 0.81=\text{₹}6480$$

The bonus increases by 24% every year. Therefore, after 2 years, the bonus is calculated as:

$${\text{Bonus}}_{2022}=2500\times {(1+\frac{24}{100})}^2$$

$${\text{Bonus}}_{2022}=2500\times {\left(1.24\right)}^2=2500\times 1.5376=\text{₹}3844$$

Now, we find the total earning in March, 2022:
Total Earning in March, 2022 = Salary₂₀₂₂ + Bonus₂₀₂₂ = ₹6,480 + ₹3,844 = ₹10,324

3. Difference in Earning:
Comparing the earnings of March, 2020 and March, 2022:

$$\text{Difference}=10500-10324=176$$

Since the earning in March, 2022 (₹10,324) is less than the earning in March, 2020 (₹10,500), there is a decrease of ₹176 in his total earnings.