A price of 400 is decreased by 20% and the new price is then reduced by 10%. What is the final price?
Answer and explanation
Correct answer: B. 288
- Step 1: After the first change the price is 400 x 0.8 = 320.
- Step 2: After the 10% reduction it is 320 x 0.9 = 288.
Answer
288.
Why not the others: 280 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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