The cost of apples is increased by 20% and then decreased by 20%, What is the net percentage decreases ?
Answer & explanation
Correct answer: option 1
Let Initial Price = 100x
ATQ
Price increase by 20%, then decrease by 20%
Therefore,
New Price = 100x × \(\frac{120}{100}\) × \(\frac{80}{100}\)
= 100x × \(\frac{6}{5}\) × \(\frac{4}{5}\) = 96x
Loss = 100x - 96x = 4x
Loss % = \(\frac{4x}{100x}\) × 100 = 4%