Percentage of salary increases but no.work hours decreases

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 118
Joined: Fri Apr 18, 2008 4:58 am
Thanked: 1 times
A Part-time employee whose hourly wage was increased by 25 percent
decided to reduce the number of hours worked per week so that the employee's total weekly income would remain unchanged . By what percenl should the number of hours worked be reduced ?

A)12.5 %
B)20% ( Answer)
C)25%
D)50%
E)75%

Please could anybody explain it to me how ?
Source: — Problem Solving |

User avatar
Master | Next Rank: 500 Posts
Posts: 423
Joined: Thu Dec 27, 2007 1:29 am
Location: Hyderabad, India
Thanked: 36 times
Followed by:2 members
GMAT Score:770

by simplyjat » Mon May 05, 2008 1:14 am
Its a simple increase/decrease question. For such question it better to start with 100%.

Initial salary = 100
New salary = 125.

Percentage decrease from 125 to 100
(100 - 125)/125 = 20% decrease.
simplyjat

Master | Next Rank: 500 Posts
Posts: 118
Joined: Fri Apr 18, 2008 4:58 am
Thanked: 1 times

by ifthyder » Mon May 05, 2008 1:26 am
the moment i posted the question , you abruptly replied that the sprit keep replying . Now could you please tell me why you took 125 as base ,since base we always place original price i.e 100 in donominator as original price 100 rather than 125 .

User avatar
Master | Next Rank: 500 Posts
Posts: 423
Joined: Thu Dec 27, 2007 1:29 am
Location: Hyderabad, India
Thanked: 36 times
Followed by:2 members
GMAT Score:770

by simplyjat » Mon May 05, 2008 1:39 am
For the initial transition 25% the base is 100.
Once the transition is complete the new base becomes 125.

Percentage change = (new value - original value) / original value
simplyjat