**Options: **

- 25% increase
- 2.5% decrease
- 0.25% increase
- 0.25% decrease

The correct Answer is Option 4. 0.25% decrease

**Solution: **

Let assume length of the rectangle = x sqm

Breadth of the rectangle = y sqm

Area of rectangle = length * breadth

Area of rectangle : XY sq. m

Length ‘ x’ decreased by 5% & breadth ‘y’ increase by 5%

New length = 0.95x meter

New breadth = 1.05y meter

New rectangle area : 0.95x*1.05y = 0.9975 sq. m

Change in Area = Original Area – New Area = xy – 0.9975xy = 0.0025 xy sqm

% decrease in area = (0.0025xy/xy)*100 = 0.25 % sqm

Ans : 0.25% decrease in area