15 Views

Question : The price of a car is first increased by 35% and after that, the price is decreased by 25% due to a reduction in sales. What is the net percentage change in the final price of the car?

Option 1: Decreases by $2 \frac{1}{5}$%

Option 2: Increases by $2 \frac{1}{3}$%

Option 3: Decreases by $1 \frac{3}{5}$%

Option 4: Increases by $1 \frac{1}{4}$%


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Increases by $1 \frac{1}{4}$%


Solution : Let the initial price of the car be 100.
After a 35% increase, the price becomes $(100×\frac{135}{100}) = 135$
After 25% decrease on the new price = $135 - \frac{25}{100}\times 135=135-\frac{135}{4}=\frac{405}{4}$
Percentage Change = $\frac{\text{Final Price – Initial Price}}{\text{Initial Price}} \times 100$
Substituting the values we have:
$\therefore$ Percentage Change = $\frac{\frac{405}{4} -100}{100} \times 100 = 1 \frac{1}{4}$%
Hence, the correct answer is Increases by $1 \frac{1}{4}$%.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books