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A CAT QA question reads: 'Anjali's salary increased by 20% in 2024. In 2025, the new salary then decreased by 20%. Her 2025 salary is what percent of her original?
A$100\%$ exactly
B$96\%$ of original
C$80\%$ of original
D$120\%$ of original
Answer & Solution
Correct answer: B. $96\%$ of original
(1.20)(0.80) = 0.96 = 96% of original. The naive '20 − 20 = 0' or '100%' is the classic CAT trap.
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