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Question

Salary of a person is first increased by 20%, then it is decreased by 20%. Change in his salary is
  1. 4% decrease
  2. 4% increase
  3. 8% decrease
  4. 20 % increase

A
4% increase
B
8% decrease
C
20 % increase
D
4% decrease
Solution
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Let the salary of the person be Rs. 100
After 20% increment, the salary will be Rs. 120
Again 20% decrement, now the salary will be12020100×120= Rs. 96
% change in salary is equal to 10096100×100=4 %.

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