A jacket costing 150 dollars is increased by 20%, then reduced by 20%. What is the final price?
Answer and explanation
Correct answer: D. 144 dollars
Answer: 144 dollars. Why not the others: The two percentages apply to different amounts so they do not cancel.
- Step 1: After a 20% increase: 150 x 1.2 = 180.
- Step 2: After a 20% reduction of the new price: 180 x 0.8 = 144.
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