A store increases the price of an item by 25% and then offers a 20% discount. Wh

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Question: A store increases the price of an item by 25% and then offers a 20% discount. What is the net percentage increase in price?

Options:

Correct Answer: 10%

Solution:

New price = 1.25x, after discount = 1.25x * 0.8 = x * 1.0. Net increase = 0%.

A store increases the price of an item by 25% and then offers a 20% discount. What is the net percentage increase in price?

A store increases the price of an item by 25% and then offers a 20% discount. What is the net percentage increase in price?

Correct Answer: 0%

Step 1: Let's say the original price of the item is 'x'.
Step 2: The store increases the price by 25%. To find the new price, we calculate 25% of 'x' which is 0.25x. Then we add this to the original price: New price = x + 0.25x = 1.25x.
Step 3: Now, the store offers a 20% discount on the new price. To find the discount amount, we calculate 20% of 1.25x, which is 0.2 * 1.25x = 0.25x.
Step 4: We subtract the discount from the new price to find the final price after the discount: Final price = 1.25x - 0.25x = 1.0x.
Step 5: Now we compare the final price to the original price. The final price is 1.0x, which is the same as the original price 'x'.
Step 6: To find the net percentage increase, we see that the final price (1.0x) is equal to the original price (x), so there is no increase.
Step 7: Therefore, the net percentage increase in price is 0%.

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