Example 1: What percent decrease in salaries would exactly cancel out the 20% increase?
Solution: Method 1: Basic - Let salary = Rs 100
Increment = 20%
⇒ New salary = 100 + 20% of 100 = Rs 120
We need to decrease Rs 20 to get original salary.
⇒ Percentage decrease = (20/120) x 100 = (50/3) %
Method 2: Formula: Percentage decrease = (x/(100 + x)) x 100%
⇒ (20/120) x 100 = (50/3)%
Increment = 20%
⇒ New salary = 100 + 20% of 100 = Rs 120
We need to decrease Rs 20 to get original salary.
⇒ Percentage decrease = (20/120) x 100 = (50/3) %
Method 2: Formula: Percentage decrease = (x/(100 + x)) x 100%
⇒ (20/120) x 100 = (50/3)%
Good....maths
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