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. an increase of 12.5%
- Step 1: Multiply the two factors: .
- Step 2: Compare with : the overall change is .
Answer
an increase of 12.5%.
Why not the others: an increase of 25%: it simply subtracts the two percentages, but the second change applies to the new price. a decrease of 12.5%: the direction of the change is reversed. an increase of 7.5%: the two factors are not multiplied correctly.
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