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Examoogle • User • info@examoogle.com • EE-2024-8821
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The selling price of an article is increased by 30% and then two successive discounts of 10% each are allowed. Find the net change in the selling price.
increases by 5.7%
increases by 5.3%
decreases by 5.3%
decreases by 5.7%
increases by 5.3%
Given: Initial percentage increase on Selling Price = +30%, two successive discounts = 10% each.
Initial percentage increase on Selling Price = +30%, two successive discounts = 10% each.
Net Percentage Change=x+y+100x×y
Assume initial Selling Price SP=100. After 30% increase, SP1=130. Two successive 10% discounts multiply by 0.9×0.9=0.81. Final SP=130×0.81=105.3. Net increase =105.3−100=5.3%.
Subtracting 10%+10%=20% directly from 30% to get 10% increase, ignoring that discounts are applied sequentially on the updated price.
Assume Initial Base Value
Let the initial selling price (SP) of the article be 100.
Initial SP=100
Apply 30% Price Increase
When the price is increased by 30%, the new selling price becomes 100+(30% of 100)=130.
SP1=100×(1+10030)=130
Apply Successive 10% Discounts
Two successive discounts of 10% each are allowed on 130. The multiplier for each 10% discount is (1−10010)=0.9.
Final SP=130×0.9×0.9=130×0.81=105.3
Calculate Net Percentage Change
Compare the final selling price with the initial selling price: Net Change=105.3−100=+5.3%. Since the result is positive, the net selling price increases by 5.3%.
Net Change=105.3−100=5.3%(Increase)
B is correct because the final selling price becomes 105.3 compared to the initial base of 100, resulting in a net increase of 5.3%.
For successive changes of +a%, −b%, and −c%, you can either use the multiplier method (1+a/100)(1−b/100)(1−c/100) or iteratively apply the net change formula x+y+100xy step-by-step.