The price of an item increased by 20%, and then a 25% discount was applied. What is the net percentage change in the price?

Explanation

Step 1: Assume original price = 100

(This makes percentage calculations easy)

Step 2: Increase by 20%

$$100+20\%\text{ of }100=100+20=120$$

Step 3: Apply 25% discount on new price

25% of 120=30
$$120-30=90$$

Step 4: Find net change

Original price = 100
Final price = 90

Change = 90 − 100 = −10

Step 5: Percentage change

$$frac{-10}{100} times 100 = -10$$

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