A price is increased by 20% and then decreased by 25%. What is the overall change?

Answer and explanation

Correct answer: D. -10% decrease

  1. Step 1: The multiplier is 1.2 x 0.75 = 0.9.
  2. Step 2: That is a change of -10%.
Answer
-10% decrease.
Why not the others: -5% decrease, 15% decrease and 10% increase do not fit.

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