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CAT 2018 Slot 1 · Quant · Percentages · easy

The population of a town increased by 20% in the first year, decreased by 25% in the second year and increased by 10% in the third year. If the…

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The population of a town increased by 20% in the first year, decreased by 25% in the second year and increased by 10% in the third year. If the population at the end of the third year was 39,600, what was the population at the start?
  1. A. 38,500
  2. B. 40,000
  3. C. 41,500
  4. D. 42,000
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Answer: (B) 40,000

Net multiplying factor = 1.20 × 0.75 × 1.10 = 0.99.

Initial population = 39,600 / 0.99 = 40,000.

Note that a 20% rise followed by a 25% fall is not neutral: 1.2 × 0.75 = 0.9, a net 10% fall.

Tip: Work backwards by dividing by the product of the growth factors.
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Original question written in the CAT 2018 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