Correct Answer - Option 3 : 20%
Given:
The salary of a worker is increased by 25%
Concept used:
New salary = Old + increment
Calculation:
Let the salary of the workers be 100.
If the salary is increased by 25%, then the new salary
100+ [100× (25/100)]
⇒ 100 + 25
⇒ 125
So, his new salary is 125
To make his salary original 25 must be subtracted from 125, then his salary will be 125 - 25 = 100 or the original salary.
So, To find the percentage of salary which must be decreased we must find that 25 is what percentage of 125.
So, decrease% = (25/125) × 100
⇒ 1/5 × 100
⇒ 20%
∴ By 20 percentage should the new pay be reduced to restore the basic pay
