Question

The number 4000 is first increased by 25% and then decreased by 30%. This results in from the initial value.

• A. 10% increase
• B. 12.5% increase
• C. 12.5% decrease
• D. 5% decrease

Answer 1

The correct option is C 12.5% decrease

Initial value = 4000

25% of 4000 = Increase
$\Rightarrow$ $\frac{25}{100}\times 4000$ = Increase
$\Rightarrow$ Increase = 1000

Value after 25% increase
= Initial value + Increase
= 4000 + 1000 = 5000

30% of 5000 = Decrease
$\Rightarrow$ $\frac{30}{100}\times 5000$ = Decrease
$\Rightarrow$ Decrease = 1500

Value after 30% decrease
= Value after 25% increase - Decrease
= 5000 - 1500 = 3500

Since, the resulting value is less than the initial value,

overall decrease = 4000 - 3500 = 500

Decrease % = $\frac{500}{4000}\times 100$ = 12.5%

Therefore, there is a decrease of 12.5% from the initial value.