A man's wage was reduced by 50%. Again, the reduced wage was increased by 50%. Find his loss in terms of percentage:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 25%
The 50% increase is worked out on the reduced wage, which is smaller than the original, so it does not make up the 50% cut. The loss is measured against the original wage.
Assuming the original wage to be 100:
After the 50% cut: \(100-50=50\)
After a 50% rise on 50: \(50+25=75\)
Loss \(=100-75=25\), that is, 25% of the original wage