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Leo has a salary of 馃挿 120000. Calculate his new salary if it is increased by x% & decreased by x%. [I Like Mathematics]

The answer is: 120000(1 - x^2/10^4)

Please explain the steps.
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Unlearn41-45, M
How can you calculate his salary without knowing the value of x? Though the formula is correct...
Riemann31-35, M
@Unlearn this is part b fam. Part a was, what if 10% increase and then 10% decrease. Got 118800.
Unlearn41-45, M
@Riemann yes it should be less that his original salary...