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Price of a house came down by 20% during recession. After one year, the price increased by 25%. What was the effective change percent in the price of house over the original price?1). 0%2). 5%3). -5%4). 10% |
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Answer» Let the price of a house be Rs. 100 Given, Price of a house CAME down by 20% during RECESSION, Price of a house during recession = 100 - 100 × (20/100) = 80 Price of a house during recession is Rs. 80 Given, Price increased by 25%. Price of a house after INCREMENT = 80 + 80 × (25/100) = 80 + 20 = 100 ∴ Price after increment is Rs. 100 which is equal to ORIGINAL price of a house. |
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