Question

What’s the answer for number 22 and how do you solve it?

Answer 1

See below

Explanation:

This can be easily understood if we take the original price to be "100".

First, we need to decrease this by 20%. That would be:

20/100 = 0.2

100 * 0.2 = 20

100 - 20 = 80

Thus, Sale Price = $80

Now, price will be increase 20% on this $80. That would be:

20/100 = 0.2

0.2 * 80 = 16

80 + 16 = $96

Clearly the item hasn't been restored to original price. The price is in fact $4 less (or 4% less).

Note: We took $100 as original price. You can take any price and follow this rule, you will see that the price is ALWAYS 4% less than original.