If a seller marks up the price of a product by 50% and then offers a discount of

If a seller marks up the price of a product by 50% and then offers a discount of 20%, what is the effective percentage increase in the price?

If a seller marks up the price of a product by 50% and then offers a discount of 20%, what is the effective percentage increase in the price?

Step 1: Assume the cost price of the product is $100.
Step 2: Calculate the marked price by adding 50% to the cost price: $100 + ($100 * 0.50) = $150.
Step 3: Calculate the discount amount on the marked price: $150 * 0.20 = $30.
Step 4: Subtract the discount from the marked price to find the selling price: $150 - $30 = $120.
Step 5: Calculate the effective increase in price by comparing the selling price to the original cost price: ($120 - $100) / $100 = 0.20.
Step 6: Convert the increase to a percentage: 0.20 * 100 = 20%.

Percentage Increase – Understanding how to calculate percentage increases and decreases in price.
Markup and Discount Calculations – Applying markup and discount percentages to a base price.
Effective Price Change – Determining the net effect of a markup followed by a discount.