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

Question

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

ccooley · Answer

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).

piyush945 · Answer

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

m1033512 · Answer

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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Connor1396 · Answer

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

ScottTargetTestPrep · Answer

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

Answer: C

CAMANISHPARMAR · Answer

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

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