Bhuvan’s salary was first decreased by 16% and subsequently increased by 25%. Find the net percentage change in his salary.

Correct option is D

Given:
Bhuvan’s salary was decreased by 16%.

Subsequently, his salary was increased by 25%.

Solution:

Let Bhuvan's initial salary be ₹100.

​First Decrease:

Decrease by 16%.

Decrease amount = 16% of ₹100 = ₹16 

Salary after decrease = ₹100−₹16 = ₹84

​Subsequent Increase:

​Increase by 25%.

Increase amount = 25% of ₹84 = 0.25×₹84= ₹21

Salary after increase = ₹84 + ₹21= ₹105

​Net Percentage Change:

Initial salary ₹100.

Final Salary: ₹105

Change in Salary: ₹105−₹100 = ₹5

​Net Percentage Change = $$\frac{₹5}{₹100} \times 100 \%$$ = 5%

The net percentage change in Bhuvan's salary is an increase of 5%.

Thus, correct answer is (d) 5% increase