Question 60

The price of an article is first increased by 20% and later on decreased by 25% due to reduction in sales. Find the net percentage change in final price of article.

Solution

Let the initial price of the article = Rs. $$100x$$

Price after 20% increase = $$\frac{120}{100} \times 100x = 120x$$

Price after 25% decrease = $$\frac{75}{100} \times 120x$$

= $$90x$$

$$\therefore$$ Net % change = $$\frac{100x - 90x}{100x} \times 100$$

= $$10 \%$$

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