The price of an article is first increased by 25% and later on, the price was decreased by 30% due to a reduction in sales. Find the net percentage change in the final price of the article.
Answer & explanation
Correct answer: option 4
Let the price of article = 100
after increase = 100 + 25% of 100 = 125
Then , Price after reduction of 30% = 125 - 30% of 125
= 125 - \(\frac{30}{100}\) × 125
= 125 - 37.5 = 87.5
Decrease in final price = 100 - 87.5 = 12.5%