A man's wage was reduced by 50%. Again, the reduced wage was increased by 50%. Find his loss in terms of percentage:
A man's wage was reduced by 50%. Again, the reduced wage was increased by 50%. Find his loss in terms of percentage:
Solution
Let the original wage be ₹100.
The wage is reduced by 50%:
Loss
Wage after reduction
The reduced wage is increased by 50%. This increase is calculated on the current wage of ₹50, not the original wage:
Increase
Final wage
The loss in wage:
Loss
Loss percentage
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
where (decrease) and (increase)
The negative sign indicates a loss of 25%.
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