Bunuel wrote:

megafan wrote:

Decreasing the original price of an item by 25% and then decreasing the new price by z% is equivalent to decreasing the original price by

(A) \(0.25(1 + \frac{3z}{100})\)

(B) \(0.25(1 + \frac{z}{100})\)

(C) \(0.25(1 - \frac{3z}{100})\)

(D) \(0.75(1 - \frac{z}{100})\)

(E) \(0.75(1 + \frac{3z}{100})\)

Source: Gmat Hacks 1800

Similar question to practice from OG:

increasing-the-original-price-of-an-article-by-15-percent-127086.htmlHope it helps.

An easy approach is to assume a convenient value for z.

1. Let it be 20%

2. The value is first reduced by 25%. So it becomes 75%

3. The above value is then reduced by 20%. So it becomes 60%

4. So the equivalent reduction is 40%

Choice A gives the same equivalent percentage i.e., 0.25(1 + 3*20/100) = 0.25 (1+0.6) = 0.4 = 40%.

If you want to confirm and have the time, you can test for 1 more value of z.

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Srinivasan Vaidyaraman

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