Question

During 2003, the production of a factory decreased by 25%. But, during 2004, it (production) increased by 40% of what it was at the beginning of2004. Calculate the resulting change (increase or decrease) in production during these two years.

Answer 1

Let at the start of 2003, production = 100
decrease = 25%
∴ New production = 100 - 25 = 75

In 2004, it is increased by 40%

∴ Increase = `(75 xx 40)/(100)` = 30

∴ New production = 75 + 30 = 105

∴ Resulting change in two years (Increase)

= 105 - 100 = 5

∴ percentage change in increase

= `(5)/(100) xx 100` = 5%