The length of a rectangle is increased by 10% and breadth

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The length of a rectangle is increased by 10% and breadth decreased by 10% Then the area of the new rectangle is

1. neither decreased nor increased
2. increased by 1%
3. decreased by 1%
4. decreased by 10%

Correct Option: C

Using Rule 7,
Net effect

=		x + y +	xy		%
			100

=		10 - 10 -	10 × 10		% = -1 %
			100

Negative sign shows decrease.