Question

George decided to accept a 20% drop in his salary during 2020.By what percentage must George's salary increase to get back to where it was before the salary drop during 2020​

Answer 1

25%

Explanation:

Let George's salary = $50,000 per year

If his salary dropped by 20%, then his salary would be 80% of his previous salary (as 100% - 20% = 80%).

Convert 80% to a decimal: 80% = 80/100 = 0.8

Therefore, 80% of 50000 = 0.8 x 50000 = $40,000

We wish to increase his salary back to the original amount of $50,000.

The difference between the two salaries is : 50000 - 40000 = 10000

Therefore, we need to calculate the percentage that $10,000 is of $40,000.

⇒ (10000 / 40000) x 100 = 25%

So George's salary needs to increase by 25% to get back to where it was before the salary drop.