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CAT 2017 Slot 1 · Quant · Percentages · easy

Ravi's monthly salary is 25% more than Karan's. By what percentage is Karan's salary less than Ravi's?

Single correct option

Ravi's monthly salary is 25% more than Karan's. By what percentage is Karan's salary less than Ravi's?
  1. A. 25%
  2. B. 22.5%
  3. C. 20%
  4. D. 15%
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Answer: (C) 20%

Let Karan's salary = 100. Then Ravi's = 125.

Karan's salary is less than Ravi's by 25, and this must be expressed as a percentage of Ravi's salary (the base of comparison): 25/125 × 100 = 20%.

Why 25% is wrong: 25% uses Karan's salary as the base, which is the reverse comparison.

Shortcut: If A is r% more than B, then B is r/(100 + r) × 100 % less than A. Here 25/125 = 1/5 = 20%.
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