The price of an item is increased by 20 % and then decreased by 20 % . The final price as compared to…
A rise of 20 per cent followed by a fall of 20 per cent multiplies the price by \( 1.2 \times 0.8 = 0.96 \), so the final price is 4 per cent below the original. The two…
Choose your answer
The price of an item is increased by 20 % and then decreased by 20 % . The final price as compared to the original price is
Answer and explanation
Correct answer D
A rise of 20 per cent followed by a fall of 20 per cent multiplies the price by , so the final price is 4 per cent below the original.
The two changes do not cancel, because the 20 per cent fall is taken on the higher price.
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UGC NET Paper I