If price of a book is first decreased by 25% and then increased

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If price of a book is first decreased by 25% and then increased by 20%, the net change in the price of the book will be

1. 10% decrease
2. 5% decrease
3. no change
4. 5% increase

Correct Option: A

The net change in price

=		25 + 20 -	25 × 20		%
			100

= (–25 + 20 – 5)% = – 10%
Negative sign shows decrease.