A number is first increased by 60%, and thereafter it is reduced by 60% again. What is the overall reduction?
Let us derive the shortcut formula first, so that you can remember it and use it when the need arises. Suppose the number is 100, and let the increase be x%. The number becomes 100 + x. When it is reduced by x%, we get 100 + x - $((100 + x) × x)/100$ = 100 + x - $(x + x^2/100)$ = 100 - $x^2/100$, hence a reduction of $x^2/100$ = 36%