A price of 50 is increased by 40% and the new price is then reduced by 50%. What is the final price?
Answer and explanation
Correct answer: A. 35
- Step 1: After the first change the price is 50 x 1.4 = 70.
- Step 2: After the 50% reduction it is 70 x 0.5 = 35.
Answer
35.
Why not the others: 45 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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