If the price of a shirt is increased by 25% and then decreased by 20%, what is t

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Question: If the price of a shirt is increased by 25% and then decreased by 20%, what is the final price if the original price was $40?

Options:

Correct Answer: $38

Solution:

New price after increase = 40 + 25% of 40 = 50; New price after decrease = 50 - 20% of 50 = 40.

If the price of a shirt is increased by 25% and then decreased by 20%, what is the final price if the original price was $40?

If the price of a shirt is increased by 25% and then decreased by 20%, what is the final price if the original price was $40?

Step 1: Start with the original price of the shirt, which is $40.
Step 2: Calculate the increase of 25% on the original price. To do this, multiply $40 by 0.25 (which is 25%). This gives you $10.
Step 3: Add the increase ($10) to the original price ($40). So, $40 + $10 = $50. This is the new price after the increase.
Step 4: Now, calculate the decrease of 20% on the new price ($50). To do this, multiply $50 by 0.20 (which is 20%). This gives you $10.
Step 5: Subtract the decrease ($10) from the new price ($50). So, $50 - $10 = $40. This is the final price after the decrease.

Percentage Increase and Decrease – Understanding how to calculate the new price after applying a percentage increase followed by a percentage decrease.
Order of Operations – Recognizing the importance of performing calculations in the correct sequence.