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Vijay’s salary was first reduced by 16% and subsequently raised by 11%. What percentage was his final salary lower compared to his initial salary
Question

Vijay’s salary was first reduced by 16% and subsequently raised by 11%. What percentage was his final salary lower compared to his initial salary?

A.

6.76%

B.

16%

C.

1.76%

D.

11%

Correct option is A

Given:

Vijay's salary was first reduced by 16% and then raised by 11%.

Solution:
Let the initial salary be S.

After a reduction of 16%, the new salary becomes S×(10.16)=S×0.84S \times (1 - 0.16) = S \times 0.84 ​​
After an increase of 11%, the final salary becomes S×0.84×(1+0.11)=S×0.84×1.11 \times 0.84 \times (1 + 0.11) = S \times 0.84 \times 1.11 ​​

Thus, the final salary is S×0.84×1.11=S×0.9324S \times 0.84 \times 1.11 = S \times 0.9324 ​​

Percentage change=(Final salaryInitial salaryInitial salary)×100 Percentage change=(S×0.9324SS)×100=(0.93241)×100=6.76%\text{Percentage change} = \left( \frac{\text{Final salary} - \text{Initial salary}}{\text{Initial salary}} \right) \times 100 \\ \ \\\text{Percentage change} = \left( \frac{S \times 0.9324 - S}{S} \right) \times 100 = \left( 0.9324 - 1 \right) \times 100 = -6.76\%​​

Vijay's final salary is 6.76% lower than his initial salary.​

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