Question

The pilots of an airline have signed a new two-year contract. For the first year of the new contract, current salaries will be reduced by 25 percent. For the second year, these reduced salaries will be further reduced by 10 percent. What percent of their current salaries will the pilots earn during the second year of the new contract?

Answer 1

0.75*0.9 = 0.675 = 67.5%

For the first year, the pilots are earning 75% of their current salaries ( reduced by 25%)
For the second year, the pilots are earning 10% less than the salaries in the first year, so 75% * 0.9 = 67.5%