Question
The price of a commodity is increased by 25% and then decreased by 20%. What is the net percentage change in the price?
Solution
Assume original price = 100. After 25% increase ⇒ 125 After 20% decrease ⇒ 125 − 0.2×125 = 125 − 25 = 100 Net change = final − initial = 100 − 100 = 0 So there is no net percentage change (0%).
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