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    Question

    The price of a commodity is increased by 25% and then

    decreased by 20%. What is the net percentage change in the price?
    A 10% increase Correct Answer Incorrect Answer
    B 5% decrease Correct Answer Incorrect Answer
    C 4% increase Correct Answer Incorrect Answer
    D No change Correct Answer Incorrect Answer

    Solution

    Assume original price = 100. After 25% increase β‡’ 125 After 20% decrease β‡’ 125 βˆ’ 0.2Γ—125 = 125 βˆ’ 25 = 100 Net change = final βˆ’ initial = 100 βˆ’ 100 = 0 So there is no net percentage change (0%).

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