Question

The price of an article is increased by $20\%$ and then decreased by $10\%$. Then find effect on price.

• A. Decreased by $8\%$
• B. Increased by $8\%$
• C. Decreased by $20\%$
• D. Increased by $20\%$

Answer 1

Answer: (B)

The correct option is B Increased by $8\%$
$LetinitialpricebeRs.100$

$Increaseinprice=20\%$

$\therefore Newprice=100(1+\frac{20}{100})$

$=120$

Now the price is decreased by $10\%$

$\therefore Newprice=120(1-\frac{10}{100})$

$=108$

$\therefore finalprice=108$

$initialprice=100$

$\therefore Increaseinprice=(108-100)=Rs.8$

$\%increase=\frac{increase\left(inRs\right)}{initialprice}\times 100$

$=\frac{8}{100}\times 100\%$

$=8\%$

Hence, there is $8\%$ increase in price