The salary of a person is decreased by 25% and then the decreased salary is incr

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Question

The salary of a person is decreased by 25% and then the decreased salary is increased by 25%. His new salary in comparison with his original salary is

Options:

A . 6.25% less

B . 6.25% more

C . the same

D . 0.625% less

Answer: Option A
Answer: (a)
Effective change
= $(–25 + 25 - {25 × 25}/100)%$ = – 6.25%
The negative sign shows decrease.
Using Rule 3,
If an amount is increased by a% and then it is reduced by a% again, then percentage change will be a decrease of $a^2/100%$

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