A price of 250 is increased by 20% and the new price is then reduced by 10%. What is the final price?
Answer and explanation
Correct answer: A. 270
- Step 1: After the first change the price is 250 x 1.2 = 300.
- Step 2: After the 10% reduction it is 300 x 0.9 = 270.
Answer
270.
Why not the others: 275 adds and subtracts the percentages directly, but the second change applies to the new price; the other values apply only one of the changes.
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