Chetan’s salary was first reduced by 40% and subsequently raised by 24%. How much percentage was his final salary lower compared to his initial salary?

The correct answer is 25.6%.

Let's solve this step-by-step to find the overall percentage change in Chetan’s salary.

Step 1: Assume an initial salary
For ease of calculation, let Chetan's initial salary be $100$ units.

Step 2: Calculate the salary after the first reduction
The salary is reduced by $40\%$.
Amount of reduction = $40\%\text{of}100=40$
Salary after reduction = $100-40=60$

Step 3: Calculate the salary after the subsequent increase
The reduced salary ($60$) is subsequently raised by $24\%$.
Amount of increase = $24\%\text{of}60$

$=\frac{24}{100}\times 60=14.4$

Final salary = $60+14.4=74.4$

Step 4: Find the total decrease compared to the initial salary
Decrease in salary = $100-74.4=25.6$

Step 5: Express the decrease as a percentage
Percentage decrease = $\frac{25.6}{100}\times 100=25.6\%$

Thus, Chetan’s final salary is 25.6% lower compared to his initial salary.