If the price of an item is first increased by 10 per cent and then decreased by 10 per cent, the net effect is
- A. no change
- B. a 1 per cent decrease
- C. a 1 per cent increase
- D. a 10 per cent decrease
Explanation
Starting at 100, a 10 per cent rise gives 110, and a 10 per cent fall on 110 removes 11, leaving 99, so the net change is a loss of 1 per cent. The decrease is larger in absolute terms because it is calculated on a larger base. Successive percentage changes never simply cancel.
Related questions
If today is Wednesday, what day will it be after 100 days?
A man is 24 years older than his son. In two years, his age will be twice that of his son. What is the son's present age?
A shopkeeper sells an item for Rs. 240 at a profit of 20 per cent. What was the cost price?
If 5 workers build a wall in 12 days, how long would 6 workers take, working at the same rate?
A train 150 m long travelling at 90 km per hour takes how long to pass a stationary pole?