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%