Salary of a person is increased by 20%, then it is decreased by 20%. Change in his salary is ?

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Navy Tradesman Mate Official Paper (Held In: 03 Feb, 2024)
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  1. 4% decreased
  2. 4% increased
  3. 8% decreased
  4. neither decrease nor increase

Answer (Detailed Solution Below)

Option 1 : 4% decreased
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Detailed Solution

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Calculation:

Let the initial salary is 100 Rs.

Increased salary = 100 (1+ 20/100) = 120

Decreased salary = 120 (1 - 20/100) = 96

% Change in salary = [(100 - 96)/100]  × 100 

∴ Change in salary = 4%

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