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Masood's salary is reduced by 10% and then reduced salary is increased by 10%. Find ,how many percentage his present salary is less as compared to his previous salary?

Correct answer: C. 1%

  • A. Nothing
  • B. 10%
  • C. 1%
  • D. 5%

Explanation

Take the previous salary as 100%. A 10% reduction makes it 90%, and a 10% increase on that reduced salary gives 90% x 110% = 99%, so the present salary is 1% less. The likely mistake is “Nothing,” caused by cancelling equal percentage changes even though the second 10% is calculated from the reduced salary.

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About Percentages

Percentages express a quantity as parts per hundred and support calculations involving increases, decreases, discounts, commissions, taxes, and successive changes. Questions require distinguishing percentage change from percentage points and identifying the original value when a final value and its percentage change are given.

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