The original price of an article was reduced by 25 percent.

Question

The original price of an article was reduced by 25 percent. During a special sale the new price was decreased by 10 percent. By approximately what percent would the price now have to be increased in order to restore the price of the article to its original amount? 

A) 32.5% 
B) 35% 
C) 48% 
D) 65% 
E) 67.5%

Is it 32.5 or 48? I figured it was 48, but PR says its 32.5

saikadelik · Answer

let the original price be x.
reduced by 25%, it becomes, 0.75x.
reduced by another 10%, it becomes, 0.675x.

that is 67.5% of the original or a decrease in 32.5%. the price would have to be increased by 32.5% in order to get back to the original.

IHATEMELGIBSON1 · Answer

aren't you taking the percentage increase of the 67.5? Thus 32.5 of 67.5 is 48? When do you know to do that?

saikadelik · Answer

the question asks for 'by what percent should the price be increased'. it does not ask for 'increase in percent of the price'. 

think of the % as units.

nitinneha · Answer

my answer is 48%.

what is OA?

techjanson · Answer

Let original price be P
Current price = 9/10 x 3/4 x P = 27/40 P

Percent increase to come to original =  /27/40P x 100
which comes to 48%

I think if this is not the answer then I am misunderstanding the question

querio · Answer

Po = $100 (ASSUMPTION)
P1 (after 1st discount) = 75% x $100 = $75
P2 (after 2nd discount) = 90% x $75 = $67.5

P2-Po = $32.5

The percentage increase from P2 to Po (remember that our reference is still P2) is: % = (P2-Po)/Po = 32.5/67.5 = 48%

Therefore, my answer is C)

fmeinsen · Answer

Agree, I would also say the answer is 48% as the question asks by how much the price has to be increased. The price (currently 67.5% reduced) has to be increased by 48% to get to the original level. 

The PR answer is clearly misleading. Maybe a mistake.

kumarajeet06 · Answer

it will be 48%:-D. if oa says 32.5 % then either OA is wrong or there is some typo error in question

The original price of an article was reduced by 25 percent.

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards