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Get access to the detailed solutions to the previous years questions asked in IIM IPMAT exam
We are told that there was two successive increments in the salary, with the second increment percentage twice the first one.
Total Increment was 187.5%.
Drawing up the equation
(1 + z) (1 + 2z) = 1.875
1 + 3z + 2z2 = 1.875
2z2 + 3z – 0.875
z = 0.25
Answer is 25%.