Question

Aditya salary was increased by 40% and then
decreased by 25%. Find out net effect in Aditya's
salary.?​

Answer 1

Given:

Aditya's salary was increased by 40% and then  decreased by 25%

To find:

The net effect in Aditya's  salary

Solution:

Let "x" be Aditya's original salary.

After an increase of 40% in the salary,

∴ The new salary will be = x + [40% of x] = x + $\frac{40}{100}$x = x + 0.4x = 1.4x

Then, there is a decrease of 25% in the salary,

Now,

The salary will become = $1.4x - [\frac{25}{100} *1.4x] = 1.4x - 0.35x = 1.05x$

∴ The net effect in Aditya's salary will be,

= $\frac{Change \:in\: the \:salary}{Original\: salary}*100$

= $\frac{1.05x \:-\: x}{x}*100$

= $\frac{0.05 x}{x}*100$

= 0.05 * 100

= 5% increase

Thus, the net effect in Aditya's salary is an increase of 5%.

Shortcut Method:

We have the salary first increasing by 40% and then decreasing by 25%, so we can use a direct formula to find the net effect in the salary:

= [± a ± b + {(±a)(±b)/100}]%

here a = +40% and b = -25%

= [+ 40 - 25 + {(+40)(-25)/100}]%

= [15 - 10]%

= 5% increase

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