Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Percentages

Question:

The price of an article is first increased by 20% and subsequently decreased by 25% due to reduction in sales. Find the net percentage change in price of the article.

Options:

10% decrease

0.2% increase

8% decrease

5% decrease

Correct Answer:

10% decrease

Explanation:

We have,

Price of a mobile is first increased by 20% and later decreased by 25%

Let's assume the original price of the mobile is 100.

When the price is increased by 20%, it becomes 100 x 1.20 = 120.

Then, when the price is decreased by 25%, it becomes

= 120 * (1 - 0.25) = 90.

Final price of the mobile is

= (90 - 100) / 100 * 100 = -10%.

So, the final price is decreased by 10% compared to the original price.