Problem: If a worker receives a 20% cut in wages, he may regain his original pay exactly by obtaining a raise of:
Answer Choices:
A. 20 per cent
B. 25 per cent
C. 2221 per cent
D. $20
E. $25
Solution:
W2=W1−W2/5=4W1/5.∴W1=5W2/4. The increase needed is W2/4 or 25% of W2.