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A man's wage was reduced by 50%. Again, the reduced wage was increased by 50%. Find his loss in terms of percentage:

Solution

✅ Correct Option: 4

Let the original wage be ₹100.

The wage is reduced by 50%:

Loss =50% of 100= 50\% \text{ of } 100

=50100×100= \dfrac{50}{100} \times 100

=50= 50

Wage after reduction =100−50=50= 100 - 50 = 50


The reduced wage is increased by 50%. This increase is calculated on the current wage of ₹50, not the original wage:

Increase =50% of 50= 50\% \text{ of } 50

=50100×50= \dfrac{50}{100} \times 50

=25= 25

Final wage =50+25=75= 50 + 25 = 75


The loss in wage:

Loss =100−75=25= 100 - 75 = 25

Loss percentage =LossOriginal Wage×100= \dfrac{\text{Loss}}{\text{Original Wage}} \times 100

=25100×100= \dfrac{25}{100} \times 100

=25%= 25\%


The 50% decrease is calculated on ₹100 (loses ₹50), while the 50% increase is calculated on ₹50 (gains only ₹25). This results in a net loss of ₹25, which is 25% of the original wage.

Alternatively, using the formula for successive percentage changes:

Net percentage change =a+b+ab100= a + b + \dfrac{ab}{100}

where a=−50a = -50 (decrease) and b=50b = 50 (increase)

=−50+50+(−50)(50)100= -50 + 50 + \dfrac{(-50)(50)}{100}

=0−25= 0 - 25

=−25%= -25\%

The negative sign indicates a loss of 25%.

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