A price rises by 20% and then falls by 20%. How does the final price compare with the original?

Answer and explanation

Correct answer: C. 4% lower

  1. Step 1: Start at 100: after +20% it is 120. Step 2. 20% off 120 is 24, giving 96, which is 4% below 100. Answer: 4% lower. Why not the others: the percentages apply to different amounts, so they do not cancel.

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