Arun's salary is increased by 20% in January and his salary is again increased by 35% in the month of November. What is the overall percentage increase in his salary?

Given:

Initial Salary = ₹S

First increment = 20%

Second increment = 35%

Formula used:

Overall percentage increase = \((1+\frac{r_1}{100}) × (1+\frac{r_2}{100}) - 1\)

Where, r₁ = first increment percentage, r₂ = second increment percentage

Calculation:

First increment r1 = 20% = 0.2

Second increment r2 = 35% = 0.35

⇒ Overall percentage increase = (1+0.2) × (1+0.35) - 1

⇒ Overall percentage increase = (1.2) × (1.35) - 1

⇒ Overall percentage increase = 1.62 - 1

⇒ Overall percentage increase = 0.62

⇒ Overall percentage increase = 62%

∴ The correct answer is option (4).