When the price of an item was reduced by 20%, its sales increased by x% . If there is an increase of 25% in the receipt of the revenue, then the value of x is:
Answer & explanation
Correct answer: option 3
20% = \(\frac{1}{5}\) & 25% = \(\frac{1}{4}\)
Ratio of , Original : New
Price 5 : 4
Sale 100 : 100 + x
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Revenue 4 : 5
ATQ,
\(\frac{5× 100 }{4 × (100+x) }\) = \(\frac{4}{5}\)
2500 = 1600 + 16x
16x = 900
x = 56.25%