Single correct option
The price of a jacket is first increased by 30%. During a sale, the new price is reduced by 20%, and a loyalty card gives a further 5% off the sale price. Compared with the original price, the final price is
- A. unchanged
- B. 1.2% lower
- C. 5% higher
- D. 1.2% higher
Show answer and solution
Answer: (B) 1.2% lower
Successive percentage changes multiply. Final = 1.30 × 0.80 × 0.95 = 1.04 × 0.95 = 0.988 of the original price.
So the final price is 98.8% of the original, i.e. 1.2% lower.
Tip: never add successive percentages (+30 − 20 − 5 = +5% is the trap in option 3); convert each change to a multiplying factor.
So the final price is 98.8% of the original, i.e. 1.2% lower.
Tip: never add successive percentages (+30 − 20 − 5 = +5% is the trap in option 3); convert each change to a multiplying factor.
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