A man's wages were decreased by 50%. Again the reduced wages were increased by 50%.
He has a net loss of:
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If w represents the man's wages, then the man earns ( 1 − 0 . 5 ) w = 0 . 5 w = w 0 after the first alteration in his income. After the second, he earns ( 1 + 0 . 5 ) w 0 = 2 3 ⋅ ( 2 1 w ) = 4 3 w = 0 . 7 5 w . Since the problem asks us what the net loss of his wages are, we just calculate 1 − 0 . 7 5 = 0 . 2 5 , i.e., a 2 5 % loss in wages.
Suppose man's wages is 100
if 50% decreases then wages become 100 - 100 * 50/100 = 50
Now wages increased by 50% then it is = 50 + 50 *50/100 = 25
now income become = 50 +25 = 75
loss = 100- 75 = 25
25 of 100 is 25%
there for loss is 25% (Ans.)
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Let the man's wage be 1 0 0 rupees.
If it is decreased by 50% , then it becomes 1 0 0 − ( 1 0 0 ∗ 1 0 0 5 0 ) = 5 0 rupees.
Now, if it is increased again,then it becomes 7 5 . (How ?)
Therefore net loss is 1 0 0 1 0 0 − 7 5 = 2 5 %