If a number is increased by 20% and then decreased by 20%, what is the net chang

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Question: If a number is increased by 20% and then decreased by 20%, what is the net change? (2022)

Options:

Correct Answer: 0%

Exam Year: 2022

Solution:

Net change = (1.2x * 0.8) - x = 0.96x, which is a decrease of 4%.

If a number is increased by 20% and then decreased by 20%, what is the net change? (2022)

If a number is increased by 20% and then decreased by 20%, what is the net change? (2022)

Step 1: Start with a number, let's call it x.
Step 2: Increase the number x by 20%. To do this, multiply x by 1.2. This gives you 1.2x.
Step 3: Now, take the result from Step 2 (which is 1.2x) and decrease it by 20%. To do this, multiply 1.2x by 0.8. This gives you 0.96x.
Step 4: Compare the final result (0.96x) to the original number (x).
Step 5: To find the net change, subtract the original number x from the final result 0.96x. This gives you 0.96x - x = -0.04x.
Step 6: The result -0.04x means there is a decrease of 4% from the original number.

Percentage Increase and Decrease – Understanding how to apply percentage changes sequentially and their cumulative effect on a number.
Net Change Calculation – Calculating the overall effect of two successive percentage changes on a value.