A number is increased by 20% and then decreased by 20%. What is the net change?

A number is increased by 20% and then decreased by 20%. What is the net change?

Correct Answer: -4%

Step 1: Start with a number. Let's choose 100 for easy calculations.
Step 2: Calculate a 20% increase on 100. 20% of 100 is 20, so 100 + 20 = 120.
Step 3: Now, calculate a 20% decrease on the new number, which is 120. 20% of 120 is 24, so 120 - 24 = 96.
Step 4: Find the net change by comparing the final number (96) to the original number (100).
Step 5: Calculate the change: 96 - 100 = -4.
Step 6: To find the percentage change, divide the change by the original number: -4 / 100 = -0.04.
Step 7: Convert -0.04 to a percentage by multiplying by 100: -0.04 * 100 = -4%.

Percentage Increase and Decrease – Understanding how to calculate percentage changes and their cumulative effects on a number.
Net Change Calculation – Determining the overall effect of sequential percentage changes on an initial value.