The price of an item is first increased by $10\%$ and later decreased by $15\%$. The net percentage change is

The price of an item is first increased by $10\%$ and later decreased by $15\%$. The net percentage change is
  1. decrease of $5\%$
  2. decrease of $6.5\%$
  3. increase of $5\%$
  4. no change

Solution

Net factor $= 1.10 \times 0.85 = 0.935$. So price falls by $6.5\%$.

Asked in: IMO

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