Increasing the original price of an item by 20% and then decreasing the price by 20% is equivalent to which of the following?
A
4% decrease
B
5% increase
C
Original price
D
5% decrease
Correct Answer: 4% decrease
let the number is 100 increase 20% = 100 + 20 = 120 decrease of 20% on 120 = (20/100)×120 = 24 nett amount 120–24 = 96 So decrease 100–96 = 4 decrease of 4 out of 100 percentage of decrease 4%