Ramesh’s pocket money was reduced by 25%. and then the reduced pocket money was increased by 20%. Find the net increase or decrease percentage in his original pocket money.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Decrease 10%.
Let the original pocket money be Rs. 100
After a 25% reduction = 100 - 25% of 100 = 100 - 25 = Rs.75
After a 20% increase on the reduced amount = 75 + 20% of 75 = 75 + 15 = Rs.90
So,
Change in amount = 100 - 90 = -10 [decrease]
So,
Percent change = Change/Original amount × 100
⇒ -10/100 × 100 = -10%