A coat is priced at ₹6000. In the sale, its price is reduced by 25%. After the sale, its price will be increased by 25% of the reduced price. What will be the price of the coat (in ₹) after the sale?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 5625
The rise after the sale is 25% of the reduced price, not of the original price, so the price does not come back to ₹6000.
Sale price after the 25% cut: \(6000-1500=4500\)
Rise after the sale, 25% of the sale price: \(1125\)
Price after the sale: \(4500+1125=\) ₹5625
Shortcut:
A fall of \(x\%\) followed by a rise of \(x\%\) is a net fall of \(\displaystyle\frac{x^2}{100}\%\): here \(\displaystyle\frac{25^2}{100}=6.25\%\)
\(6000\times0.9375=5625\)