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Moons salary was first increased by 20% and then decreased by 20%. If his present salary is Rs. 7200, then what was his original salary?

Correct answer: B. Rs. 7500

  • A. Rs. 8000
  • B. Rs. 7500
  • C. Rs. 7400
  • D. Rs. 7200
  • E. None of these

Explanation

The two changes multiply the original salary by 1.20 x 0.80 = 0.96, so Rs. 7200 = 0.96 x original salary. Original salary = Rs. 7200 ÷ 0.96 = Rs. 7500. The likely trap is Rs. 7200, which assumes a 20% increase and a 20% decrease cancel even though they apply to different bases.

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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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