csatmedium
The increase in the price of a certain item was 25%. Then the price was decreased by 20% and then again increased by 10%. What is the resultant increase in the price?
- A.5%
- B.10%
- C.12.5%
- D.15%
▶ Answer & Explanation
Correct answer: B. 10%
To find the resultant change, we can assume an initial price, say 100. An increase of 25% makes it 125. A subsequent decrease of 20% on 125 brings it to 100 (125 * 0.80 = 100). Finally, a 10% increase on 100 results in 110. Therefore, the net increase from the original 100 is 10%.
Source: UPSC csat 2022