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Question

Ram’s salary was first increased by 20% and then it was reduced by 10%. Find the percentage change in his salary.

A
8% decrease
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B
8% increase
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C
No change
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D
12% increase
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Solution

The correct option is B 8% increase
Successive change formula is used.
Here x = 20, y= 10

x+y+xy100

= 20 10 20 ×10100 = 8% Increase (as it is positive)

Alternative
New salary = 1.2 × (1-0.1) = 1.2 × 0.9 = 1.08 = 8% increase

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