Question

Narendra’s salary was decreased by 50% and subsequently increased by 50%. How much percent does he lose?

• A. 20
• B. 25
• C. 35
• D. 30
• E.

Hint:

When salary is decreased and then increased by the same percentage, the overall effect will be a loss. Calculate the net effect by applying the changes step by step.

Answer 1

The Correct Option is B

Let Narendra's original salary be Rs. \( x \). 

Step 1: First, the salary is decreased by 50\%. The new salary becomes: \[ \frac{x}{2} \] 

Step 2: Next, the reduced salary is increased by 50\%. The new salary is: \[ \frac{x}{2} \times 1.5 = \frac{3x}{4} \] 

Step 3: Since the new salary is \( \frac{3x}{4} \), the reduction in salary is: \[ x - \frac{3x}{4} = \frac{x}{4} \] 

Step 4: The percentage loss is calculated as follows: \[ \frac{\frac{x}{4}}{x} \times 100 = 25\% \] Thus, Narendra experiences a 25\% loss in salary.