An allowance is increased by 20% and then reduced by 10% of the increased amount. What is the overall change from the original allowance?
- 8% increase
- 4% increase
- 2% increase
- None of these
Explanation
Let original allowance = 100
1. Increased by 20%
100 + 20% of 100 = 120
2. Reduced by 10% of the increased amount
10% of 120 = 12
120 - 12 = 108
Final = 108
Overall change = +8% from original.
i.e. a net increase of 8%.
Last verified on 21-10-2026
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