The salary of employees in a factory was reduced by 20% due to economic crisis. In order to have their salary back to original amount, it must be raised by:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 25%.
Let the original salary = 100
Reduced salary = 100 - 20 = 80
Percentage increase = (20/80) × 100% = 25%
Therefore, the salary must be raised by 25% to get back to the original amount.