Ramesh's pocket money was reduced by 25%, and then the reduced pocket money was increased by 20%. Find the net increase or decrease percentage in his original pocket money.

Question

Question

This question was previously asked in

SSC CHSL Exam 2024 Tier-I Official Paper (Held On: 08 Jul, 2024 Shift 3)

Answer 1

Given:

Ramesh's pocket money is first reduced by 25% and then increased by 20%.

Formula used:

Final value = Initial value × (1 - Reduction%) × (1 + Increase%)

Net percentage change = ((Final value - Initial value) / Initial value) × 100

Calculation:

Let the original pocket money be ₹100.

After a 25% reduction:

⇒ ₹100 × (1 - 0.25) = ₹100 × 0.75 = ₹75

Now, increase the reduced amount by 20%:

⇒ ₹75 × (1 + 0.20) = ₹75 × 1.20 = ₹90

Now, calculate the net change:

⇒ Net percentage change = ((90 - 100) / 100) × 100

⇒ Net percentage change = (-10 / 100) × 100

⇒ Net percentage change = -10%

∴ There is a net decrease of 10% in Ramesh's original pocket money.