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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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FrozenWasteland61-69, M Best Comment
After an x% increase, the new salary is 120000 * (1 + x / 100). Agreed?

The rest is left as an exercise for the student.
Riemann31-35, M
FrozenWasteland61-69, M
@Riemann

Current salary is 120000.
x% of that is, by definition 120000 * x / 100.
After the raise, salary is 120000 + 120000 * x /100.
Or, factoring out the 120000, we get 120000 * (1 + x / 100).

Then do a similar thing for the x% decrease.

The rest is just a bit of algebra.

What part is giving you issues?
Riemann31-35, M
@FrozenWasteland Could you please explain the factoring part?
FrozenWasteland61-69, M
@Riemann ok. Basically we're going to multiply the whole thing by 120000 and then divide by 120000. Maybe that will be illustrative.start with:

y = 120000 + 120000 * x / 100

Do the multiply and divide:

y = 120000 * (120000 + 120000 * x / 100) / 120000

Now distribute the division over the two terms in the parentheses.

y = 120000 * (120000 / 120000 + 120000 * x / 100 / 120000)

Clearly 120000/120000 is 1 and 120000 * x / 100 / 120000 is just x / 100.

So 120000 + 120000 * x / 100 equals 120000 * (1 + x / 100)

Does that help or make it worse?
Riemann31-35, M
@FrozenWasteland The decrease one seems too big.
We need to decrease x% from
120000 * (1 + x / 100)?
FrozenWasteland61-69, M
@Riemann That's correct. you need to decrease x% from 120000 * (1 + x/100). So you get:

120000 * (1 + x/100) * (1 - x/100)

The decrease is always bigger than the increase was (in dollars, not percentage) because it's the same percentage of a larger number. Think of a 100% increase followed by a 100% decrease -- whatever you started with, the end result is 0.