Question : The salary of an employee was first increased by 15% and thereafter it was reduced by 10%. What was the percentage change in his salary?
Option 1: 10%
Option 2: 103.5%
Option 3: 3.5%
Option 4: 15%
Correct Answer: 3.5%
Solution :
Let the initial salary of the employee be 100.
First increased by 15% = $\frac{100+15}{100}\times100$ = 115
Again decreased by 10% = $\frac{100-10}{100}\times115$ = 103.5
$\therefore$ Required percentage = $\frac{\text{Final salary - initial salary}}{\text{initial salary}}\times100$
= $\frac{103.5-100}{100}\times100$
= $3.5\%$
Hence, the correct answer is 3.5%.
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