Question

An item that originally cost $100 is decreased by 8%. The reduced price is then increased by 8%.

The resulting price is _____.

Answer 1

The resulting price is $99.36.

Explanation:

Original cost of the item = $100

The decrease percentage is 8% or 0.08

So, the reduced price becomes :

`100-(0.08*100)=92` dollars

Now again the reduced price is increased by 8%.

So, multiplying the reduced price by 8% and adding it again we get;

`92+(0.08*92)` =$99.36

So, the resulting price is $99.36.

Answer 2

first, find the decreased price by multiplying 100 by 8% and subtracting:

100 x 0.08 = 8

100-8 = 92 ( reduced price )

now multiply reduced price by 8% and add:

92 x 0.08 = 7.36

92 + 7.36 = $99.36