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Bunuel
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Bunuel
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Another way of doing is by picking numbers.

Let the sides of Original Rectangle be 10, 20. Area = 200
New rectangle after the one side reduced by 20% = sides = 8,x.
Stem says : 8x = 200 => x = 25. Percentage Increase = (25-20)/20 * 100 = 25%
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length x breadth = Area of a rectangle
10 x 10 = 100(say)

New,
8 x 10b=100
80b=100
b=100/80*100%
=125%
25% increase
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I have edited the question and the solution by adding more details to enhance its clarity. I hope it is now easier to understand.
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