The salary of a worker is first increased by 25%, then it is decreased by 12%. What is the overall percentage change in his salary?

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Accepted Answer

Let the original salary be 100 units.

First, the salary is increased by 25%, so the new salary = 100 + 25% of 100 = 100 + 25 = 125.

Then, the salary is decreased by 12%, so the new salary after decrease = 125 - 12% of 125 = 125 - 15 = 110.

The overall change in salary = 110 - 100 = 10 units increase.

Percentage change = (10 / 100) * 100% = 10% increase.

However, this contradicts the options given. Let's re-check the decrease calculation:

12% of 125 = (12/100) * 125 = 15.

So, final salary = 125 - 15 = 110.

Percentage increase from original = ((110 - 100) / 100) * 100 = 10% increase.

The correct answer is 10% increase, but the given answer is 13% increase. Let's verify by using multiplication method:

Overall multiplier = 1.25 * 0.88 = 1.1

This means a 10% increase.

Therefore, the correct answer is 10% increase.

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