A store increases the price of an item by 25% and then offers a 20% discount. Wh
Practice Questions
Q1
A store increases the price of an item by 25% and then offers a 20% discount. What is the net percentage change in price?
5% increase
10% decrease
10% increase
5% decrease
Questions & Step-by-Step Solutions
A store increases the price of an item by 25% and then offers a 20% discount. What is the net percentage change in price?
Correct Answer: 0%
Step 1: Assume the original price of the item is $100.
Step 2: Calculate the new price after a 25% increase. This is done by multiplying the original price by 1.25 (which is 100% + 25%). So, 100 * 1.25 = $125.
Step 3: Calculate the discount amount. The store offers a 20% discount on the new price of $125. This is done by multiplying $125 by 0.20. So, 125 * 0.20 = $25.
Step 4: Subtract the discount from the new price to find the final price. So, $125 - $25 = $100.
Step 5: Compare the final price to the original price. The final price is $100, which is the same as the original price.
Step 6: Calculate the net percentage change in price. Since the final price is the same as the original price, the net change is 0%.
Percentage Increase and Decrease – Understanding how to calculate percentage increases and decreases in price.
Net Change Calculation – Determining the overall effect on price after applying both an increase and a discount.
