VeritasPrepKarishma wrote:

PareshGmat wrote:

A businessman earns $27800 in December, thus decreasing his average annual (January to December) earnings by $1200. His average annual earnings would be

A: $29000

B: $33500

C: $40200

D: $41000

E: $42300

Source: CMAT Preparation

Had he earned the previous average in Dec too, the average would have stayed same. To bring down the average earning by $1200, the December earning needs to account for -1200 of all 12 months i.e. it must be 1200*12 = 14400 less than previous average.

So previous average = 27,800 + 14400 = 42,200

So now the average of the year would be 42,200 - 1200 = 41000

Answer (D)

Hi karishma,

Shouldn't the question have made it more clear that they are looking for the average " after " the decrease .

Or is the future tense " would be " a proper hint?

Felt " would become " would have been more clearer.

I arrived at 42200 then just couldn't find it in the options !

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- Stne