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    5. If a product's price increases by 25% and then decreases by 20%, what is the net percentage change i

    Question

    If a product's price increases by 25% and then decreases

    by 20%, what is the net percentage change in price?
    A no change Correct Answer Incorrect Answer
    B 5% decrease Correct Answer Incorrect Answer
    C 5% increase Correct Answer Incorrect Answer
    D 10% decrease Correct Answer Incorrect Answer

    Solution

    Let the original price = 100. After a 25% increase, price = 100 + 25 = 125. After a 20% decrease, new price = 125 - 25 = 100. Net change = 0%. Correct answer : a) no change

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