Naresh’s monthly income is reduced by 15%. By what percentage must his reduced income be increased so that it is again equal to his original monthly income (correct to one decimal place)?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 17.6%
The cut of 15% is taken on the original income, but the increase is taken on the reduced income, which is smaller. So the increase needed is more than 15%.
Let the original income be 100; reduced income \(=100-15=85\)
Increase needed \(=100-85=15\)
As a percentage of 85: \(\displaystyle \frac{15}{85}\times100=\frac{300}{17}=17.647\ldots\%\)
Correct to one decimal place: \(17.6\%\)
His income must be increased by 17.6%.