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Ashish’s salary was increased by 22% and subsequently decreased by 22%. How much percent does she lose/gain?
1. 3.45%
2. 4.84%
3. 6.78%
4. 7.88%

1 Answer

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Correct Answer - Option 2 : 4.84%

Given:

Salary increased by 22%

Salary decreased by 22%

Formula used:

If any value first increased by x% and later decreased by x%, then the net effect is always decrease and this loss is calculated by using the formula as follows:

(x2/100)%

Calculation:

[(22 × 22)/100]%

⇒ 4.84%

Alternative method:

Let the original salary is Rs. 100

Salary increased by 22%

New salary = 100 + 22% of 100 = Rs. 122

Salary decreased by 22%

Salary after decrease = 122 – 22% of 122 = Rs. 95.16

Salary decrease = 100 – 95.16 = Rs. 4.84

Decrease percentage = (4.84/100) × 100 = 4.84%

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