If the price of a shirt is increased by 20% and then decreased by 20%, what is t

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Question: If the price of a shirt is increased by 20% and then decreased by 20%, what is the net change in price?

Options:

Correct Answer: 8%

Solution:

Let the original price be 100. After 20% increase: 100 + 20 = 120. After 20% decrease: 120 - 24 = 96. Net change = (96 - 100)/100 × 100% = -4%.

If the price of a shirt is increased by 20% and then decreased by 20%, what is the net change in price?

If the price of a shirt is increased by 20% and then decreased by 20%, what is the net change in price?

Step 1: Assume the original price of the shirt is 100.
Step 2: Calculate the price after a 20% increase. 20% of 100 is 20, so the new price is 100 + 20 = 120.
Step 3: Calculate the price after a 20% decrease from the new price of 120. 20% of 120 is 24, so the new price is 120 - 24 = 96.
Step 4: Calculate the net change in price. The original price was 100 and the final price is 96.
Step 5: Find the change in price: 96 - 100 = -4.
Step 6: Calculate the percentage change: (-4 / 100) × 100% = -4%.

Percentage Increase and Decrease – Understanding how to calculate the effects of successive percentage changes on a value.
Net Change Calculation – Calculating the overall change in value after applying both an increase and a decrease.