The price of an article is first raised by 20 percent and then reduced by 20 percent. What is the net change?
Answer and explanation
Correct answer: D. A 4 percent decrease
- Step 1: Start with a price of 100. Step 2. After a 20 percent rise it is 120, and after a 20 percent fall it is , a drop of 4. Answer: A 4 percent decrease. Why not the others: The two percentages apply to different amounts, so the change is not zero, and it is a fall, not a rise.
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