If the price of a washing machine is first increased by 25% and then decreased by 25%, then the net change in price will be a:

Let's assume the initial price of the washing machine was Rs. 100.

If the price of a washing machine is first increased by 25%.

price of a washing machine after increase = 100 of (100+25)%

= 100 of 125%

= 125

Then decreased by 25%.

price of a washing machine after decrease = 125 of (100-25)%

= 125 of 75%

= $$125\times\frac{75}{100}$$

= $$125\times\frac{3}{4}$$

= $$\frac{375}{4}$$

= 93.75

Net percentage change in price = $$\frac{100-93.75}{100}\times\ 100$$

= 6.25 % decrease

Alternative solution

Shortcut by successive percentage = $$25\%-25\%-25\%\times25\%$$

= $$25\%-25\%-\frac{625}{100}\%$$

= $$-6.25\%$$

= 6.25 % decrease [Becasue of negative sign here percentage decrease]