Target Exam

CUET

Subject

General Aptitude Test

Chapter

Numerical Ability

Topic

Profit and Loss

Question:

(A) If a product's price is decreased by 25 % and then increased by 20%, then the net change in the price of the product, is decrease by 10%
(B) If a product's price is increased by 15 % and then again increased by 20 %, then the net change in the price of the product, is: Increase by 38%

Choose the correct option(s):

Options:

Both (A) and (B)

Neither (A) and nor (B)

Only (A)

Only (B)

Correct Answer:

Both (A) and (B)

Explanation:

The correct answer is Option (1) → Both (A) and (B)

Statement (A)

  • Initial Step: Price decreases by 25%.

$100 - 25\% \text{ of } 100 = 75$

  • Second Step: Price increases by 20%.

$75 + 20\% \text{ of } 75 = 75 + 15 = 90$

  • Net Change:

The price went from 100 to 90, which is a 10% decrease.

  • Conclusion: Statement (A) is True.

Statement (B)

  • Initial Step: Price increases by 15%.

$100 + 15\% \text{ of } 100 = 115$

  • Second Step: Price increases by 20%.

$115 + 20\% \text{ of } 115 = 115 + 23 = 138$

  • Net Change:

The price went from 100 to 138, which is a 38% increase.

  • Conclusion: Statement (B) is True.

Final Answer:

Both statements are mathematically correct.

Result: Both (A) and (B)