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 the price of the shirt?

Options:

Correct Answer: 4%

Solution:

Let the original price be 100. After a 20% increase, the price is 120. After a 20% decrease, the price is 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 the price of the shirt?

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

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: Find the net change in price. The original price was 100, and the final price is 96.
Step 5: Calculate the net change percentage using the formula: (final price - original price) / original price * 100%. So, (96 - 100) / 100 * 100% = -4%.

Percentage Change – Understanding how to calculate percentage increases and decreases.
Net Change Calculation – Determining the overall effect of sequential percentage changes on a value.