Question : The price of an article is first increased by 25% and later on, the price was decreased by 30% due to a reduction in sales. Find the net percentage change in the final price of the article.
Option 1: 11.5% increased
Option 2: 14% decreased
Option 3: 13% increased
Option 4: 12.5% decreased
Correct Answer: 12.5% decreased
Solution :
Let the original price of the article be 100.
After a 25% increase, the new price $=100 + 25 = 125$
Then, a 30% decrease on the new price $=125 - \frac{30}{100}\times 125 = 87.5$
The net percentage change $=\frac{{\text{Final price} - \text{Initial price}}}{\text{Initial price}} \times 100$
$=\frac{{87.5-100}}{{100}} \times 100 = -12.5%$
Hence, the correct answer is 12.5% decreased.
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