Question

A item in a shop is increased in price by 20% and then decreased in price by 20% a month later.

Is there an overall increase or
decrease in price and by how
much?

please give the method too

Answer 1

Decrease of 4% ($4).

Explanation:

Suppose the initial price was $100. An increase of 20% will make the price $120.

Now we decrease it 20% which brings it to 120 - 0.20 * 120

= 120 - 24

= $96.

So that's an overall decrease of $4 or 4%.