Question

The price of flower is first decreased by 10% and then increased by 5%, then what is the net change in the price of flower?
1. 5.5% decrease
2. 5.5% increase
3. 4.5% increase
4. 4.5% decrease
5. None of these

Answer 1

Correct Answer - Option 1 : 5.5% decrease

Formula used:

Net change in % = (Initial – Final)/Initial × 100

Calculation:

Let the price of flower be x

Price of flower after decrease = x – 10% of x = 0.9x

Price of flower after increase = 0.9x + 5% of 0.9x = 0.945x

Change in price of flower = x – 0.945x = 0.055x

Net change % = 0.055x/x × 100 = 5.5%

∴ The % change in price of flower is 5.5%