When the price of an article was reduced by 25%, its sale was increased by 75%. Calculate the net effect on revenue.
Answer & explanation
Correct answer: option 2
25% = \(\frac{1}{5}\)
75% = \(\frac{3}{4}\)
Price = 4 3
Sale = 4 7
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16 21
Daily revenue increased by 5 = \(\frac{5 × 100}{16}\) = 31.25%