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Que: The trader first decreased the selling price of a bicycle by 25 percent and then increased by 25 percent.

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Que: The trader first decreased the selling price of a bicycle by 25 percent and then increased by 25 percent.

by Max@Math Revolution » Mon Nov 23, 2020 12:10 am

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Que: The trader first decreased the selling price of a bicycle by 25 percent and then increased by 25 percent. Which of the following represents the final percent change in the selling price of the bicycle?

(A) 6.25% less
(B) 0%
(C) 6.25% more
(D) 93.75% more
(E) 100% more
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Re: Que: The trader first decreased the selling price of a bicycle by 25 percent and then increased by 25 percent.

by Max@Math Revolution » Thu Nov 26, 2020 2:09 am
Solution: Let us apply the IVY approach to solve the question. As we are dealing with a percentage, then let the original price of a bicycle be $100.

Price after price reduced by 25%: (100 - 25)% of $100

=> \(\frac{75}{100}\) * $100

=> $75

Price after the new price increased by 25%: (100 + 25)% of $75
=> \(\frac{75}{100}\) * $75

=> $93.75

As the base price is $100, the final price would be 93.75% of the base price.

Since Percent change = \(\frac{After\ -\ Before}{Before}\) * 100(%) and $100 (Before) -> $93.75 (After),

We get Percent change = \(\frac{93.75-100}{100}\)* 100(%) = \(\frac{-6.25}{100}\) * 100(%)=-6.25%

Therefore, A is the correct answer.

Answer A
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