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A price increased by 20% and then decreased by 20%. What is the net percent change from the original price?

GRE · 2023 · quant slot 2
Question:
A price increased by 20% and then decreased by 20%. What is the net percent change from the original price?

Options

(A) 0% (no change)
(B) 2% decrease
(C) 4% decrease
(D) 2% increase
(E) 4% increase
Answer: (C) 4% decrease

Explanation:
Let original price = 100. After 20% increase: 100 × 1.20 = 120. After 20% decrease: 120 × 0.80 = 96. Net change = 96 - 100 = -4, which is a 4% decrease.

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