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16 Sep 2014, 01:04
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If an executive received a 20% salary increase from 1995 to 1996 but then experienced a 25% decrease from 1996 to 1997, by what percentage was the executive's salary in 1997 lower than in 1995?
A. 5
B. 8
C. 10
D. 12
E. 15
A. 5
B. 8
C. 10
D. 12
E. 15
16 Sep 2014, 01:04
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Official Solution:
If an executive received a 20% salary increase from 1995 to 1996 but then experienced a 25% decrease from 1996 to 1997, by what percentage was the executive's salary in 1997 lower than in 1995?
A. 5
B. 8
C. 10
D. 12
E. 15
Let \(x\) represent the executive's salary in 1995. The salary in 1996 would then be \(1.2x\). By 1997, after a 25% decrease, the salary becomes \(1.2x*0.75 = 0.9x\). Therefore, in 1997, the executive's salary was \(\frac{x - 0.9x}{x}*100\% = 10\%\) lower than in 1995.
Answer: C
If an executive received a 20% salary increase from 1995 to 1996 but then experienced a 25% decrease from 1996 to 1997, by what percentage was the executive's salary in 1997 lower than in 1995?
A. 5
B. 8
C. 10
D. 12
E. 15
Let \(x\) represent the executive's salary in 1995. The salary in 1996 would then be \(1.2x\). By 1997, after a 25% decrease, the salary becomes \(1.2x*0.75 = 0.9x\). Therefore, in 1997, the executive's salary was \(\frac{x - 0.9x}{x}*100\% = 10\%\) lower than in 1995.
Answer: C
89renegade
Joined: 01 Oct 2014
Last visit: 08 May 2019
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27 Jun 2016, 16:56
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Bunuel
Instead of x if I use a number for eg 10 then 1995 -->10, 1996--.1.2x10=12 and 1997 is 9 so when I do the next step to find percent lower (10-9)/9x100=11.11 I am not getting 12 exactly .Can you please explain where am I going wrong?
