The price of an item is increased by 20% and then decreased by 20%. The final price compared to the original price is:
A
20% less
B
20% more
C
4% more
D
4% less
Correct Option:
D
Explanation
Net percentage change formula = x + y + (xy/100).
• +20 - 20 + (20 × -20)/100 = -4%.
• When an item's price is increased and decreased by the same percentage R, it always results in a net loss equal to R²/100% = 400/100% = 4% drop.
