If Anil's salary is 20% less than that of Rama, then by what percent is Rama's salary more than that of Anil?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 25%
A percentage is always worked out on the salary it is compared with: “Anil's salary is 20% less than Rama's” is taken on Rama's salary, but “how much more is Rama's than Anil's” is taken on Anil's.
Assuming Rama's salary to be 100:
Anil's salary \(=100-20=80\)
Rama's salary is more by 20, out of Anil's 80: \(\displaystyle\frac{20}{80}\times100=25\%\)
Tip: If A is \(x\%\) less than B, then B is \(\displaystyle\frac{x}{100-x}\times100\%\) more than A; the two percentages are never equal, so 20% is not the answer.