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)

Correct option is D

Given:

Salary is raised by 30%

Formula Used:

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

Solution:

Let the original salary be 100.

The new salary after a 30% raise is:

New Salary = $$100 \times 1.30$$ = 130

Rise amount = 130 - 100 = 30

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

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