Question : A number is increased by 20% and then the increased number is decreased by 20%. The net increase or decrease is:
Option 1: Decrease 2%
Option 2: Increase 4%
Option 3: Increase 2%
Option 4: Decrease 4%
Correct Answer: Decrease 4%
Solution :
Let's say the original number is 100
Increasing the number by 20%:
Increased number = 100 + 20 = 120
Decreasing the increased number by 20%:
Final number =120 −0.20(120) = 96
Net change=Final number − Original number
⇒ Net change = 96 − 100 = – 4
Hence, The net change is a decrease of 4% of the original number
Hence, the correct answer is 'Decrease 4%'.
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