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The salary of an employee is increased by 30%. By what percentage should the new salary be reduced in order to restore the original salary? (Rounded o
Question

The salary of an employee is increased by 30%. By what percentage should the new salary be reduced in order to restore the original salary? (Rounded off to 2 decimal places)

A.

25%

B.

27.02%

C.

30%

D.

23.08%

Correct option is D

Given:

Salary is raised by 30%

Formula Used:

Reduction % = Rise amountNew salary×100 \frac{\text{Rise amount}}{\text{New salary}} \times 100​​

Solution:

Let the original salary be 100.

The new salary after a 30% raise is:

New Salary = 100×1.30100 \times 1.30 = 130

Rise amount = 130 - 100 = 30

Reduction % = (30130)×10023.08% \left( \frac{30}{130} \right) \times 100 \approx 23.08\%​​

Thus, the new salary should be reduced by approximately 23.08% to restore the original salary

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