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 overall?

• A. $3\frac{1}{5}$% decrease
• B. $4\frac{1}{5}$% decrease
• C. $3\frac{2}{5}$% incease
• D. $4\frac{3}{5}$% increase

Answer 1

The correct option is A

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

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
$=\frac{3.2}{100}$
$=3.2\%$
$=3\frac{1}{5}$%