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Income of Suman is first increased by 7%...

Income of Suman is first increased by 7% and then it is decreased by 7%. What is the change in her income?

A

0.49% (increase)

B

0.39% (decrease)

C

0.39% (increase)

D

0.49% (decrease)

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will follow the instructions provided in the transcript and perform the necessary calculations. ### Step 1: Define Suman's Initial Income Let Suman's initial income be \(100\) (this is a convenient choice to simplify percentage calculations). ### Step 2: Calculate the Income After the Increase Suman's income is first increased by \(7\%\). To find the increase: \[ \text{Increase} = 7\% \text{ of } 100 = \frac{7}{100} \times 100 = 7 \] Now, add this increase to the initial income: \[ \text{New Income} = 100 + 7 = 107 \] ### Step 3: Calculate the Income After the Decrease Next, Suman's income is decreased by \(7\%\) of the new income (\(107\)). To find the decrease: \[ \text{Decrease} = 7\% \text{ of } 107 = \frac{7}{100} \times 107 = 7.49 \] Now, subtract this decrease from the new income: \[ \text{Final Income} = 107 - 7.49 = 99.51 \] ### Step 4: Calculate the Change in Income Now, we need to find the change in income compared to the original income: \[ \text{Change in Income} = \text{Final Income} - \text{Initial Income} = 99.51 - 100 = -0.49 \] ### Step 5: Calculate the Percentage Change To express this change as a percentage of the original income: \[ \text{Percentage Change} = \left(\frac{\text{Change in Income}}{\text{Initial Income}}\right) \times 100 = \left(\frac{-0.49}{100}\right) \times 100 = -0.49\% \] ### Conclusion Suman's income has decreased by \(0.49\%\). ---
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