The salary of an employee is first decreased by 10% and then is increased by 25%. Find percent increase in his salary from the original salary.

Correct Answer: 12.5%
Let the original salary be S. Salary after 10% decrease = 0.9S Final salary after 25% increase = 1.25 x 0.9S = 1.125S Increment = 1.125S - S = 0.125S = 12.5% of S