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Question
Increasing the original price of an item by 10%, then decreasing by 20% and then again increasing the price by 10% is equivalent to :
4.4% increase
riginal price
3.2% decrease
3.5% decrease
ANSWER : 3
Descrption
<p>Let the original price be P.</p> <p>P<sub>1</sub><sub> = </sub>1.1P</p> <p>P<sub>2</sub> = 0.8P<sub>1</sub> = 0.8 x 1.1P = 0.88P</p> <p>P<sub>3</sub> = 1.1P<sub>2</sub> = 1.1 x 0.88P = 0.968P</p> <p>Change in price = {(0.968P - P) / P} x 100% = - 3.2% which is 3.2% decrease in original price.</p>
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