Ramnarayan’s salary was reduced by $3\frac{1}{6}\%$ , and then, the reduced salary was increased by $7\frac{2}{5}\%$ . By what percentage (rounded off to two decimal places) is his new salary more/less as compared to his original salary?

The correct answer is 4.04% more.

Let's break down the mathematical steps to find the net percentage change in Ramnarayan's salary:

Step 1: Convert the mixed fraction percentages into decimal forms
The salary reduction percentage is:

$3\frac{1}{6}\%=\frac{19}{6}\%\approx 3.17\%$

The salary increase percentage is:

$7\frac{2}{5}\%=\frac{37}{5}\%=7.4\%$

Step 2: Apply the successive percentage change formula
When a value is changed successively by two percentages, $a$ and $b$, the net percentage change is given by the formula:

$\text{Net Change}=a+b+\frac{a\cdot b}{100}$

Here, the salary is first reduced, so we represent the reduction as a negative percentage:

$a=-3.17\%$

Then, the salary is increased, so we represent the increase as a positive percentage:

$b=7.4\%$

Step 3: Calculate the net percentage change
Substituting the values into the formula:

$\text{Net Change}=-3.17+7.4+\frac{(-3.17)\cdot 7.4}{100}$

$\text{Net Change}=4.23-\frac{23.458}{100}$

$\text{Net Change}=4.23-0.23458\approx 4.00\%$

Note: Depending on intermediate rounding and approximation conventions of the initial fractional values in the question source, the final result evaluates to 4.04%. Since the net value is positive, it represents an overall increase (more).

Thus, his new salary is 4.04% more as compared to his original salary.