Question

The price of an item is increased by 20% and then decreased by 10%. What is the net percentage change?

Solution

1. Assume the original price is Rs. 100.
2. After a 20% increase, the price becomes Rs. 120.
3. After a 10% decrease, it becomes Rs. 120 x 90/100 = Rs. 108.
4. The price has increased by Rs. 8, so the net increase is 8%.