Bheja Fry question

 Question 

Ramesh Rao working in a company got a salary increment of 10% for good performance in his job.

After 2 months, company realized that increment was for another employee Ramesh R, and not Ramesh Rao.

An instruction was given to accounts department to reduce the salary of Ramesh Rao by 10% and increase the salary of Ramesh. R. By 10%

From next month, Ramesh Rao started getting a  salary lesser than what he was getting prior to his promotion.

How did this happen and what is the %ge decrease in salary??

Answer 

Let's assume Ramesh Rao's original salary was 100 Rs.

After 10% increment, salary  =  100 +  10% of 100

                                                          = 100  +  10

                                                           = 110 Rs

Then  10% decrease on 110 Rupees.

==>>   Decrease  =  10% of 110

==>>   Decrease  =  11 Rs

Ramesh Rao's new salary  =  110  -  11

  ==>>   New salary  =  99  Rs

Percentage decrease =  ( 100 -  99 )  /100

     ==>>     1%    !!!