Answer: The man was worse off than in 2005
Step-by-step explanation:
Assume the man's salary in 2005 was $4,500.
In 2006 therefore, his salary goes to:
= 4,500 * (1 + 10%)
= $4,950
In 2007, this drops by 10%:
= 4,950 * ( 1 - 10%)
= $4,455
The man was worse off than in 2005 because the 10% reduction was based on the larger 2006 salary but the 10% increase was based on the smaller 2005 salary.
