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CAT 2023 Slot 2 · Quant · Percentages · easy

The price of an item is increased by 20% and then decreased by 25%.

Single correct option

The price of an item is increased by 20% and then decreased by 25%. What is the net percentage change in the price?
  1. A. 5% increase
  2. B. 10% decrease
  3. C. 10% increase
  4. D. 5% decrease
Show answer and solution

Answer: (B) 10% decrease

Take the original price as 100. After a 20% increase, price = 120. After a 25% decrease on 120, price = 120 × 0.75 = 90. Net change = 90 − 100 = −10, i.e., a 10% decrease. Shortcut: net multiplier = 1.20 × 0.75 = 0.90, so a 10% decrease.
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Original question written in the CAT 2023 Slot 2 pattern and checked twice for the correct answer. Not an official question paper. How we write and check questions · Corrections policy · Report a mistake