A product's price is increased by 15% and then decreased by 15%. What is the net
Practice Questions
Q1
A product's price is increased by 15% and then decreased by 15%. What is the net effect on the price?
0%
2.25%
3.25%
4.5%
Questions & Step-by-Step Solutions
A product's price is increased by 15% and then decreased by 15%. What is the net effect on the price?
Step 1: Assume the original price of the product is $100.
Step 2: Calculate the price after a 15% increase. This is done by multiplying $100 by 15% (which is 0.15) to get $15. Then add this to the original price: $100 + $15 = $115.
Step 3: Now, calculate the price after a 15% decrease from the new price of $115. First, find 15% of $115 by multiplying $115 by 0.15, which equals $17.25.
Step 4: Subtract the decrease from the increased price: $115 - $17.25 = $97.75.
Step 5: To find the net effect on the price, calculate the difference from the original price: $97.75 - $100 = -$2.25.
Step 6: To express this change as a percentage, divide the change by the original price: -$2.25 / $100 = -0.0225.
Step 7: Convert this decimal to a percentage by multiplying by 100: -0.0225 * 100 = -2.25%.
Percentage Increase and Decrease – Understanding how successive percentage changes affect a value.
