1.

The price of a watch is increased by 25%. By what percent the price should be decreased to restore its original price?1). 18%2). 20%3). 22.5%4). 25%

Answer»

LET the original PRICE be Rs. p

Now INCREASED price is 25 % more than original price

∴ Increased price = p + 25% of p = 1.25p

Now, when the price is restored to its original price, i.e. p,

∴ % decrease in price from NEW price $(= \frac{{1.25p - p}}{{1.25p}} \TIMES 100 = \frac{{0.25p}}{{1.25p}} \times 100 = 20)$

∴ Price should be decreased by 20%.



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