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  1. The salary of a person is decreased by 25% and then the decreased salary is increased by 25%. His new salary in comparison with his original salary is
    1. the same
    2. 6.25% more
    3. 6.25% less
    4. 0.625% less
Correct Option: C

Here , a = -25% , b = 25%
Using above in formula , we get

Effective change = –25 + 25 –
25 × 25
% = –6.25%
100

The negative sign shows decrease.
second method to solve this question ,
Here y = 25%
Percentage decrease =
y2
% =
(25)2
100100

Percentage decrease =
625
= 6.25%
100



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