question_answer

An employee is required to contribute 10% of his pay to General Provident Fund. If he gets Rs. 13500 as net pay in a month, then what is the monthly General Provident Fund contribution (assuming no other deductions)?

A) Rs. 1215                       

B) Rs. 1350

C) Rs. 1500           

D) Rs. 1650

Correct Answer: C

Solution :

Let net pay of an employee \[=Rs.100\] After contributing 10%, then pay \[=Rs.\,90\] When Rs. 90 is net pay, then basic pay \[=Rs.100\] \[\therefore \] Rs. 13500 is net pay, then basic pay             \[=\frac{100\times 13500}{90}=Rs.15000\] \[\therefore \] General provident fund \[=10%\times \text{basic pay}\]