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CAT 2025 Slot 1 · Quant · Percentages · easy

The price of an article is first increased by 20% and then decreased by 20%. (Enter a negative number if the price decreases.)

Numerical answer

The price of an article is first increased by 20% and then decreased by 20%. What is the net percentage change in the price? (Enter a negative number if the price decreases.)
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Answer: -4

Let original price = 100. After +20%: 120. After −20% on 120: 120×0.8 = 96. Net change = 96−100 = −4, i.e., a 4% decrease. General rule: successive changes of +a% and −a% give a net change of −a²/100 % = −(20²)/100 = −4%.
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