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# The price of an item is reduced by \$5.00, a 20-percent decrease.

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Senior Manager
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The price of an item is reduced by \$5.00, a 20-percent decrease.  [#permalink]

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27 Mar 2019, 17:18
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Difficulty:

35% (medium)

Question Stats:

68% (01:12) correct 32% (01:13) wrong based on 50 sessions

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The price of an item is reduced by \$5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) \$30.00
B) \$25.00
C) \$24.00
D) \$20.00
E) \$4.00
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Re: The price of an item is reduced by \$5.00, a 20-percent decrease.  [#permalink]

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27 Mar 2019, 18:04
energetics wrote:
The price of an item is reduced by \$5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) \$30.00
B) \$25.00
C) \$24.00
D) \$20.00
E) \$4.00

My very first thought was to work backwards. However, this isn't going to work here. The problem is that the answer choices represent the final price, rather than the original price that we'll be increasing and decreasing. The original price that we start with is unknown, so we can't really work backwards.

So, let's use some logical reasoning instead. \$5 is 20 percent, or 1/5, of the original price. Therefore, the original price was 5 times this, or \$25.

The price started at \$25, and was reduced to \$20. Finally, the \$20 price is increased by 20 percent. 20 percent of \$20 is 1/5 of \$20, or \$4. The final price is \$24 and the answer is (C).
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Re: The price of an item is reduced by \$5.00, a 20-percent decrease.  [#permalink]

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28 Mar 2019, 00:31
energetics wrote:
The price of an item is reduced by \$5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) \$30.00
B) \$25.00
C) \$24.00
D) \$20.00
E) \$4.00

At first, 20% discount amounts to 5\$.
0.2x = 5\$
Hence, x = 25\$ (Initial Principal)
New Principal = 25 - 5 = 20\$

After a 20% increment ; New Principal = 20\$ + 4\$ = 24\$
OA:C
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Re: The price of an item is reduced by \$5.00, a 20-percent decrease.  [#permalink]

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28 Mar 2019, 02:19
IMO C .

20% decrease = 5 it means original value = 25

and after 5 reduction ,it is 20
now after 20 % increase ,
we get 1.2*20 = 24

IMO C

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Re: The price of an item is reduced by \$5.00, a 20-percent decrease.  [#permalink]

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28 Mar 2019, 02:34
1) First find the orginal price.

Let it be X.
So a 20% decrease in X is 5
So X=5/0.2
X=25

2) Now 25-5=20
So increasing it by 20%

Ans = 20*120/100 = 24
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Re: The price of an item is reduced by \$5.00, a 20-percent decrease.  [#permalink]

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02 Apr 2019, 19:17
energetics wrote:
The price of an item is reduced by \$5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) \$30.00
B) \$25.00
C) \$24.00
D) \$20.00
E) \$4.00

We can create the equation when n is the original price of the item:

0.2n = 5

n = 5/0.2 = 50/2 = 25

So the new discounted price is 25 x 0.8 = \$20. If this new price is increased by 20%, then the final price of the item is:

20 x 1.2 = \$24

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Re: The price of an item is reduced by \$5.00, a 20-percent decrease.  [#permalink]

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03 Apr 2019, 09:09
energetics wrote:
The price of an item is reduced by \$5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) \$30.00
B) \$25.00
C) \$24.00
D) \$20.00
E) \$4.00

The price of an item is reduced by \$5.00, a 20-percent decrease = 5 * 0.8/0.2 = 20 (i.e. revised price)

the new price is then increased by 20-percent; i.e 24 (Final price)

Ans C
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Re: The price of an item is reduced by \$5.00, a 20-percent decrease.   [#permalink] 03 Apr 2019, 09:09
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