Ram‘s salary increased by 12% and then decreased by 8%. Find the overall percentage change in his salary.

Correct option is C

Given:

Ram’s salary increased by 12 % and decreased by 8%

Formula Used:

Successive Formula $$= x+y+\frac{xy}{100}$$​​

Solution:

Let the salary of Ram be 100

Then increase in salary = 12% of 100 = 12

Increased salary = 100+12 = 112

Then decrease in salary = 8% of 112 = 8.96

Decreased salary = 112 - 8.96 = 103.04

Overall change = 103.04 - 100 = 3.04

Percent change =$$\frac{3.04}{100} \times 100$$ = 3.04%(increase)

Alternative Method:

Successive formula = $$12 - 8 + \frac{(12)(-8)}{100}$$​​

= 4 - 0.96

= 3.04%(increase)