Amit's salary in 2018 is Rs 126500. His salary for 2016 has risen annually by 10% and 15% respectively to reach 2018 salary figures. What was his salary in 2016?

Options

A. Rs 125000
B. Rs 115000
C. Rs 95000
D. Rs 100000

Explanation

To find Amit's salary in 2016, we can work backwards from his salary in 2018, which is Rs 126,500. We know that his salary increased by 10% in 2017 and by 15% in 2018.

Let's denote Amit's salary in 2016 as \( S \).

1. **Calculate the salary for 2017:**
Since his salary increased by 10% from 2016 to 2017, we can express his salary in 2017 as:
\[ S_{2017} = S \times (1 + 0.10) = S \times 1.10 \]

2. **Calculate the salary for 2018:**
His salary then increased by 15% from 2017 to 2018, so we can express his salary in 2018 as:
\[ S_{2018} = S_{2017} \times (1 + 0.15) = (S \times 1.10) \times 1.15 \]

This simplifies to:
\[ S_{2018} = S \times 1.10 \times 1.15 \]

3. **Combine the multipliers:**
We can calculate \( 1.10 \times 1.15 \):
\[ 1.10 \times 1.15 = 1.265 \]

Therefore, we can express the salary in 2018 as:
\[ S_{2018} = S \times 1.265 \]

4. **Set up the equation:**
We know that \( S_{2018} = 126500 \), so we can set up the equation:
\[ S \times 1.265 = 126500 \]

5. **Solve for \( S \):**
To find \( S \), we divide both sides by 1.265:
\[ S = \frac{126500}{1.265} \]

Now, calculating this gives:
\[ S \approx 100000 \]

Thus, Amit's salary in 2016 was approximately Rs 100,000.