Question : If the price of a washing machine is first increased by 25% and then decreased by 25%, then the net change in price will be a _____.
Option 1: 6.5% increase
Option 2: 6.5% decrease
Option 3: 6.25% decrease
Option 4: 6.25% increase
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Correct Answer: 6.25% decrease
Solution : Given: First percentage change ($x$) = 25% increase Second percentage change ($y$) = 25% decrease On putting the value of $x$ and $y$ in the equation, Net percentage change $=25 - 25 - \frac{25\times 25}{100}$ $= - \frac{625}{100}\%$ $=-6.25\%$ Hence, the correct answer is a 6.25% decrease.
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