The salary of a person is increased by 10%, 20% and 25% successively in three consecutive years. Find the overall percentage increase in the salary at the end of the third year.
65%
Take the starting salary as 100 and apply the three successive rises as multiplying factors 1.10, 1.20 and 1.25.
After the first year: 100 × 1.10 = 110.
After the second year: 110 × 1.20 = 132.
After the third year: 132 × 1.25 = 165.
The salary has grown from 100 to 165, an overall increase of 165 − 100 = 65 on 100, i.e. 65%.
Hence, the answer is 65%.
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