Multiple choice

A bakery sells specialty cakes for $50 each. During a weekend promotion, the bakery offered a 20% discount on the cakes. Following the weekend, the bakery decided to increase the discounted price by 30% due to high demand. What is the overall percentage change in price from the original price to the new price after the increase?

  1. 2%

  2. 4%

  3. 8%

  4. 10%

  5. 15%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Original price = 50. Discounted price = 50 * 0.8 = 40. New price = 40 * 1.3 = 52. Percentage change = ((52-50)/50) * 100 = 4%.

AI explanation

Applying the successive percentage change formula (a + b + (ab / 100)), use a discount of -20% and an increase of 30%. The calculation is -20 + 30 + ((-20)(30) / 100), resulting in 10 - 6, which is a 4% change. Because the result is positive, the overall percentage change in the price is a 4% increase.

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