Question

If the price of a shirt is increased by $25$% and then decreased by $30$% then what will be net effect?

• A. $12$% increase
• B. $12$% decrease
• C. $12.5$% increase
• D. $12.5$% decrease

Answer 1

Answer: (D)

$12.5$% decrease

Let $x$ be the price of the shirt, increase in $25\%$ gives new price $x+.25x=1.25$, decrease in $30\%$ changes the price $1.25x-0.375x=0.875x$

the net effect $x-0.875x=0.125x⟹$ $12.5\%$ decrease in the price

Option D gives the correct answer