Question

The price of a shirt is increased by 25% and then decreased by 22% what is the net change in the price (in %)
1. 2.7% increase
2. 2.7% decrease
3. 2.5% increase
4. 2.5% decrease
5. None of the above

Answer 1

Correct Answer - Option 4 : 2.5% decrease

Given:

Price = 25% increase

Decreased = 22%

Calculation:

Assuming the initial price of shirt be Rs. 100.

⇒ After 25% increase and 22% decrease, price of shirt

⇒ 100 × 125% × 78%

⇒ (100 × 25 × 78)/(100 × 100)

⇒ 97.5

⇒ Net change = (New value- Old value)/Old value

⇒ (100-97.5)/100

⇒ 2.5% drop in price

∴ 2.5% drop in price is observed