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If the price of an item is increased by 10% and then decreased by 10%, the net effect on the price of the item is --

If the price of an item is increased by 10% and then decreased by 10%, the net effect on the price of the item is -- Correct Answer a decrease of 1%

Let, price of the item = Tk.100 After 10% increase the price become = (100 + 10) = Tk.110 Then, after 10% decrease new price = 110 - 10/100×110 = Tk.99 Net decrease = 100 - 99 = Tk.1

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