Multiple choice

A man's wage was reduced by 50%. The reduced wage was then increased by 50%. His loss in percentage term is

  1. 10%

  2. 20%

  3. 25%

  4. 50%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Starting with wage W, after 50% reduction: W × 0.5 = 0.5W. After 50% increase: 0.5W × 1.5 = 0.75W. Final wage is 75% of original, meaning a 25% loss. This demonstrates that percentage changes are not reversible when applied sequentially - a 50% loss requires a 100% gain to recover, not a 50% gain.

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