Question : In the first month, the income of Mohan increased by 30%. In the second month, his income decreased by 30%. What will be the percentage increase or decrease in the income after two months?
Option 1: 15% increase
Option 2: 9% increase
Option 3: 15% decrease
Option 4: 9% decrease
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Correct Answer: 9% decrease
Solution :
According to the question:
In the first month, his income increased by 30%.
In the second month, his income decreased by 30%.
$\therefore$ Income of Mohan after 2 months = $30 +(-30) + \frac{30\times -(30)}{100} = - 9\%$
Hence, the correct answer is 9% decrease.
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