Multiple choice

The price of a machine increases by 20% in a year and decreases by 15% in the following year. What is the net percentage increase/decrease in the price of the machine?

  1. 1% increase

  2. 2% increase

  3. 1% decrease

  4. 2% decrease
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Successive percentage change formula: a + b + (ab/100). 20 - 15 + (20 * -15)/100 = 5 - 3 = 2% increase.

AI explanation

Using the net percentage change formula for successive changes of 20% and negative 15%, we calculate the multiplier as 1.2 multiplied by 0.85, which equals 1.02. This multiplier of 1.02 represents a 2% net increase in the price of the machine. The result is 2% increase.

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