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    Question

    A number is increased by 20% and then decreased by 20%.

    What is the net effect on the number?
    A No change Correct Answer Incorrect Answer
    B 4% increase Correct Answer Incorrect Answer
    C 4% decrease Correct Answer Incorrect Answer
    D 5% increase Correct Answer Incorrect Answer

    Solution

    Let the number be 100. After a 20% increase: 100 + 20 = 120. After a 20% decrease: 120 - (20% of 120) = 120 - 24 = 96. Net change = 100 - 96 = 4% decrease. Answer: c) 4% decrease.

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