The price of a camera is first increased by and then reduced by . What is the overall change in the price?

Answer and explanation

Correct answer: A. a decrease of 2%

  1. Step 1: Multiply the two factors: .
  2. Step 2: Compare with : the overall change is .
Answer
a decrease of 2%.
Why not the others: an increase of 10%: it simply subtracts the two percentages, but the second change applies to the new price. an increase of 2%: the direction of the change is reversed. an increase of 8%: the two factors are not multiplied correctly.

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