The income of a person is increased by 20% and then decreased by 20%. Then the change in his income is __________.
4% decrease
When a rise is followed by a fall of the same rate, the fall is applied to a larger base, so the result is always a net decrease.
Net change for successive changes of +x% and -y% = x - y - xy/100
= 20 - 20 - (20 × 20)/100
= -4%
Check: let income = 100; after a 20% rise = 120; after a 20% fall = 120 × 0.8 = 96, which is 4 less than 100.
Hence, 4% decrease.
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