Question 91

The salary of an employee was increased by 20% and then reduced by 10%. What was the net change in the employee’s salary?

Solution

Let original salary be Rs.100

After increment of 20% on original salary (Rs.100)

Salary = (100+20)/100 x Rs.100 = 1.2 x Rs. 100 = Rs. 120.

After decrement of 10% on increased salary (Rs.120)

Salary = (100-10)/100 x Rs.120 = 0.9 x Rs. 120 = Rs. 108.

So the final salary stands at Rs. 108

Net change w.r.t. original salary = Rs. (108-100) = Rs. 7

% change = (Rs.8/100) x Rs.100 = 8% Answer

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