Karl had his salary reduced by $10 \%$. He was later promoted and his salary was increased by $10 \%$. If his original salary was $\$ 20000$, what is his present salary?
(A) $\$ 16200$
(B) $\$ 19800$
(C) $\$ 20000$
(D) $\$ 20500$
(E) $\$ 24000$

Part B (6 credits each)
Karl had his salary reduced by $10 \%$. He was later promoted and his salary was increased by $10 \%$. If his original salary was $\$ 20000$, what is his present salary?
(A) $\$ 16200$
(B) $\$ 19800$
(C) $\$ 20000$
(D) $\$ 20500$
(E) $\$ 24000$

## Solution

If Karl had his salary reduced by $10 \%$, his new salary was $(0.90)(20000)=18000$. If his salary was then increased by $10 \%$ his new salary is $(1.10)(18000)=19800$. His salary after his 'promotion' is $\$ 19800$.

ANswer: (B)

## Part B