Question

During 2003, the production of a factory decreased by 25%. But, during 2004, it (production) increased by 40% of what it was at the beginning of 2004. Calculate the resulting change (increase or decrease) in production during these two years.

Answer 1

Let at the start of 2003, production = 100 decrease = 25%
$\therefore$ New production = 100 - 25 = 75
In 2004, it is incresed by 40 %
$\therefore$ Increase = $\frac{75\times 40}{100}$ = 30
$\therefore$ New production = 75 + 30 = 105
$\therefore$ Resulting change in two years (Increase)
= 105-100= 5
$\therefore$ precentage change in increase
=$\frac{5}{100}\times$ 100 = 5%