(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):
Answer & explanation
Correct answer: option 1
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)