A store increased the price of an item by 20% and then decreased the new price by 25%. What is the net percentage change in the item's original price?

A 5% decrease

B 10% decrease

C 15% decrease

D 20% decrease

✓ Correct Answer: Option B

Let the original price be P. Increased by 20%: 1.20P. Decreased by 25%: (1.20P) * 0.75 = 0.90P. The net change is P - 0.90P = 0.10P, which is a 10% decrease.

💡 Why is B) the correct answer?

The correct answer to the question "A store increased the price of an item by 20% and then decreased the new price by 25%. What is the net percentage change in the item's original price?" is Option B: 10% decrease.

The other options — A) 5% decrease, C) 15% decrease, D) 20% decrease — are incorrect for this GRE Exam Prep question. As explained above: Let the original price be P. Increased by 20%: 1.20P. Decreased by 25%: (1.20P) * 0.75 = 0.90P. The net change is P - 0.90P = 0.10P, which is a 10% decrease.

📚 About This GRE Exam Prep Practice Question

This 3-level GRE Exam Prep question from the Quantitative Reasoning topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GRE Exam Prep practice test or use flashcards for spaced repetition review.

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A store increased the price of an item by 20% and then decreased the new price by 25%. What is the net percentage change in the item's original price?

✓ Correct Answer: Option B

📚 About This GRE Exam Prep Practice Question

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