Percentage sample question

Question

A number is increased by 20% and then decreased by 20%. What is the net change?

1. A. No change
2. B. 4% decrease
3. C. 4% increase
4. D. 8% decrease

Correct answer

Option B: 4% decrease

Take the original number as 100. After a 20% increase it becomes 120. A 20% decrease on 120 is 24, so the final value is 96. The net change is a decrease of 4 from the original 100.

Why the other options are wrong

• No change is wrong because the second 20% is applied to 120, not to the original 100.
• 4% increase reverses the direction of the final value.
• 8% decrease doubles the loss without following the base change.

Practice tip

When percentages are applied one after another, always track the changing base.

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