A shopkeeper marks a shirt 25% above its original price and then gives a 20% discount on the marked price. How does the final price compare with the original price?

It is equal to the original priceCorrect answerYour answerIt is 5% more than the original priceCorrect answerYour answerIt is 5% less than the original priceCorrect answerYour answerIt is 1% less than the original priceCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Net change = $25 + (-20) + \frac{25 \times (-20)}{100}$ .
$= 25 - 20 - 5 = 0\%$ , so the final price equals the original.

Worth noting

Check with 100: marked price 125, 20% off 125 is 25, final 100. Just subtracting $25 - 20$ gives the tempting "5% more".

Concept: Successive increase and decrease that cancel
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsSuccessive percentage change

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Ten questions from Percentages, at your own pace.

A shopkeeper marks a shirt 25% above its original price and then gives a 20% discount on the marked price. How does the final price compare with the original price?

Explanation