If the price of an article is decreased by 20% and then the new price is increased by 25%, then what is the net change in the price?
0%
5% increase
5% decrease
Cannot be determined due to insufficient data
Let the initial price be Rs. 100 New price on decreasing the original price by 20% = 100 – 20% of 100 = 100 – 20 = Rs. 80 Now, the final price on increasing the previous price by 25% = 80 + 25% of 80 = 80 + 20 = Rs. 100
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