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Problem-Solving and Data AnalysisVery hardA rise and a discount that cancel

Problem-Solving and Data Analysis practice question

A shop raised the price of a coat by 25% and later offered 20% off the new price. The final price is what percent of the ORIGINAL price?

Answer: 100

Multiply the factors: 1.25 × 0.80 = 1.00. The final price is 100% of the original — the two changes cancel exactly.

Common wrong answers

If you answered 80
80 is the effect of the discount alone, ignoring the earlier rise.
If you answered 95
95 would need factors multiplying to 0.95; 1.25 × 0.8 is exactly 1.
If you answered 105
105 adds the percents (+25 − 20); successive percent changes multiply.

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