Problem-Solving and Data AnalysisVery hardPercent decrease that undoes a percent increase
Problem-Solving and Data Analysis practice question
A price is increased by 25%. By what percent must the new price be decreased to return it to the original price?
Answer: 20
The new price is 1.25 times the original; 1/1.25 = 0.8, a 20% decrease.
Common wrong answers
- If you answered 25
- 25% would take the price below the original, since 25% of a larger amount is more.
- If you answered 75
- 75% is the multiplier's complement, not the decrease.
- If you answered 80
- 80% is what remains after the decrease, not the decrease itself.
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