Multiple choice

A store initially increases the price of a product by 20%. Later, due to slow sales, the store decreases the new price by 15%. What is the overall percentage change in the original price of the product?

  1. 2% increase

  2. 5% increase

  3. 3% decrease

  4. 5% decrease

  5. No change
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A Correct answer
Explanation

Let the original price be 100. After a 20% increase, the price is 120. A 15% decrease on 120 is 120 * 0.15 = 18, so the final price is 120 - 18 = 102. This represents a 2% increase from the original price.

AI explanation

Using the base value of 100, a 20% increase makes the price 120. A subsequent 15% decrease on 120 reduces it by 18, bringing the final price to 102. Comparing this to the original price of 100, the overall change is a 2% increase. The result is a 2% increase.

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