Problem-Solving and Data AnalysisVery hardPercent increase that reverses a decrease
Problem-Solving and Data Analysis practice question
A price is reduced by 20%. By what percent must the reduced price be increased to return to the original price?
Answer: 25
Take an original of 100: after a 20% cut it is 80. To get back to 100, the increase is 20 on a base of 80: 20/80 = 25%.
Common wrong answers
- If you answered 20
- 20% of 80 is only 16, giving 96, not 100. The base is now smaller, so a larger percent is needed.
- If you answered 80
- 80 is the reduced price for an original of 100, not a percent increase.
- If you answered 125
- 125% is the new price as a percent of the reduced one; the INCREASE is 125% − 100% = 25%.
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