After you get a pay cut and then a raise, will your pay be the same as it was before?

A quant math problem that I can't figure out. an explanation would be very helpful!

1 Answer

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  • wg0z
    Lv 7
    8 years ago

    not usually. if one takes an x% cut, than it take more than x% to get back to the orignal value.

    the overall result involves an overall change of ((1-x ) * (1+x)), where x would be (as an example) .03 for a 3% cut follwed by a 3% raise.

    this change factor is always less than one unless x is zero, as (1-x)*(1+x)can be rewritten as (1- x^2).

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