Question

Salary of a person is first increased by 20%, then it is decreased by 20%. Percentage change in his salary is :

• A. 4% decreased
• B. 4% increased
• C. 8% decreased
• D. 20% increased

Answer 1

Answer:

A. 4% decreased

If the value of a number is first increased then decreased by x%, then net change is always a decrease which is equal to [x^2/100]% Hence, Required change in salary=(20)^2/100=4% Decrease