Civil Services Prep

Prelims 2022 · CSAT / Quantitative Aptitude · Question 20

The increase in the price of a certain item was 25%. Then the price was decreased by 20% and then again increased by 10%. What is the resultant increase in the price?

  1. 5%
  2. 10%
  3. 12.5%
  4. 15%

Answer

10%

Re-checking with base price 100: after +25%, price = 125; after -20%, price = 100; after +10%, price = 110. Net change from 100 to 110 is +10%.

  • (a) 5%: Would give final price 105. Incorrect.
  • (b) 10%: Final price is 110, so resultant increase is 10%. Correct.
  • (c) 12.5%: Would give final price 112.5. Incorrect.
  • (d) 15%: Would give final price 115. Incorrect.

The earlier conclusion of (d) was a mistake; the correct answer is (b).

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