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CAT 2016 Slot 1 · Quant · Percentages · medium

The population of a town increased by 10% in the first year, decreased by 10% in the second year and increased by 20% in the third year. If the…

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The population of a town increased by 10% in the first year, decreased by 10% in the second year and increased by 20% in the third year. If the population at the end of the third year was 1,18,800, what was the population at the beginning of the first year?
  1. A. 95,000
  2. B. 98,000
  3. C. 99,000
  4. D. 1,00,000
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Answer: (D) 1,00,000

Net multiplier = 1.1 × 0.9 × 1.2 = 1.188.

Initial population = 1,18,800 ÷ 1.188 = 1,00,000.

Note that +10% followed by −10% is not zero change; it is a net 1% loss (1.1 × 0.9 = 0.99). So 1,18,800/1.2 = 99,000 is the population after year 2, and 99,000/0.99 = 1,00,000.

Tip: Successive percentage changes multiply; never add them.
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Original question written in the CAT 2016 Slot 1 pattern and checked twice for the correct answer. Not an official question paper. How we write and check questions · Corrections policy · Report a mistake