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      Question

      The salary of a person is increased by 20% and then

      decreased by 10%. What is the net percentage change in the salary?
      A 2% decrease Correct Answer Incorrect Answer
      B 8% increase Correct Answer Incorrect Answer
      C 5% increase Correct Answer Incorrect Answer
      D No change Correct Answer Incorrect Answer

      Solution

      Let original salary = 100 After 20% increase: New salary = 100 + 20% of 100 = 120 After 10% decrease: Final salary = 120 βˆ’ 10% of 120 = 120 βˆ’ 12 = 108 Net change = 108 βˆ’ 100 = 8 increase Net percentage change = (8/100) Γ— 100% = 8% increase

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