Atul's salary was first cut by 24% and later increased by 28%. By what percent was his final salary less than his initial salary?

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  1.  24
  2.  28
  3. 6.72
  4. 2.72

Answer (Detailed Solution Below)

Option 4 : 2.72
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Detailed Solution

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Given:

Initial Salary (S) = 100 units

First Cut = 24%

Increase = 28%

Formula used:

Final Salary = Initial Salary × (1 - Cut%) × (1 + Increase%)

Percentage decrease = ((Initial Salary - Final Salary) / Initial Salary) × 100

Calculation:

Initial Salary = 100 units

First Cut = 24%

⇒ Salary after cut = 100 × (1 - 24/100)

⇒ Salary after cut = 100 × 0.76

⇒ Salary after cut = 76 units

Increase = 28%

⇒ Final Salary = 76 × (1 + 28/100)

⇒ Final Salary = 76 × 1.28

⇒ Final Salary = 97.28 units

Percentage decrease = ((100 - 97.28) / 100) × 100

⇒ Percentage decrease = (2.72 / 100) × 100

⇒ Percentage decrease = 2.72%

∴ The correct answer is option (4).

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