Question

A man's salary increased by 10% and then again by 10%. Due to corrections made by the company, his salary was decreased by 20%. By what percent did his salary increase or decrease?

• A.
• B.
• C.
• D.

Answer 1

The correct option is A

Let the original salary be ₹ 100
Salary after first increase of 10% $=100+\frac{10}{100}\times 100$

= ₹.110

Salary after second increase of 10% $=.110+\frac{10}{100}\times 110$

=₹ 121

Salary after a decrease of 20% $=121-\frac{20}{100}\times 121$

= ₹ (121 - 24.20)

= ₹.96.80

$\therefore$ Decrease in salary = 100 - 96.80 = ₹ 3.20

$\therefore$ overall decrease in salary = 3.2%

=$3\frac{1}{5}$%