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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.
Solution
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%
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