In a company, all employees are getting equal wages. If the number of employees is increased by 20% and their wages per head are decreased by 18%, what is the percentage decrease in total wages?

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Accepted Answer

Let the original number of employees be N and the original wage per employee be W.

Original total wages = N * W

Number of employees increased by 20%, so new number of employees = N * 1.20
Wages per head decreased by 18%, so new wage per employee = W * (1 - 0.18) = W * 0.82

New total wages = (N * 1.20) * (W * 0.82) = N * W * 1.20 * 0.82 = N * W * 0.984

Percentage change in total wages = ((New total wages - Original total wages) / Original total wages) * 100
= ((0.984 * N * W - N * W) / (N * W)) * 100
= (0.984 - 1) * 100 = -0.016 * 100 = -1.6%

The negative sign indicates a decrease.

Therefore, the total wages decrease by 1.6%.

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