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 4%
- Step 1: Multiply the two factors: .
- Step 2: Compare with : the overall change is .
Answer
a decrease of 4%.
Why not the others: no change: it simply subtracts the two percentages, but the second change applies to the new price. an increase of 4%: the direction of the change is reversed. an increase of 1%: the two factors are not multiplied correctly.
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