Question: If a number is increased by 25% and then decreased by 20%, what is the net effect on the number?
Options:
Correct Answer: 5% decrease
Solution:
Let the number be 100. After 25% increase: 100 + 25 = 125. After 20% decrease: 125 - 25 = 100. Net effect = (100 - 100)/100 × 100% = 0%.