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1. In creasing the original price of an item by 10%, then decreasing by 20% and then again increasing the price by 10% is equivalent to

  • A. 4.4% decrease
  • B. 4.4% decrease
  • C. 4.4% decrease
  • D. 4.4% decrease

Answer: Option C

Explanation:

In creasing the original price of an item by 10%, then decreasing by 20%  the effect of it Will be 


+10-20+ [10×(-20)]/100 = -12

Then again increasing the price by 10% the effect will be 


-12+10 +[(-12)×10]/100 =  -3.2

So, 3.2 decrease 


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