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If price of a book is first decreased by 25% and then increased by 20% the net percentage change in the price of the book will be
  • a)
    10% decrease
  • b)
    5% decrease
  • c)
    no change
  • d)
    5% increase
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
If price of a book is first decreased by 25% and then increased by 20%...
Let the original price be Rs. 100.

New final price  = 120 %  of (75 % of Rs. 100) = Rs. (120/100 * 75/100 * 100) = Rs. 90.

Decrease = 10%
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Most Upvoted Answer
If price of a book is first decreased by 25% and then increased by 20%...
First 100 rs. – 25rs. =75. then 20%(15rs) add so 75+15 = 90. so we can say that ans. is A
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Community Answer
If price of a book is first decreased by 25% and then increased by 20%...
Solution:

Let's assume the original price of the book to be Rs. 100.

Step 1: Decrease the price by 25%
After the first decrease, the price of the book will be:
100 - (25% of 100) = Rs. 75

Step 2: Increase the price by 20%
After the second increase, the price of the book will be:
75 + (20% of 75) = Rs. 90

Step 3: Calculate the net percentage change
To calculate the net percentage change, we use the formula:
Net percentage change = [(Final value - Initial value) / Initial value] x 100

In this case, the initial value is Rs. 100 (the original price of the book)
and the final value is Rs. 90 (the price after both the decrease and increase)

Net percentage change = [(90 - 100) / 100] x 100
= (-10 / 100) x 100
= -10%

Therefore, the net percentage change in the price of the book is a 10% decrease (option A).
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If price of a book is first decreased by 25% and then increased by 20% the net percentage change in the price of the book will bea)10% decreaseb)5% decreasec)no changed)5% increaseCorrect answer is option 'A'. Can you explain this answer?
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