A number is first increased by 20% and then decreased by 20%. What is the overall percentage change in the number?
Show answer & explanation
Correct answer: B
Explanation
Given:
First a 20% increase and then a 20% decrease.
By the formula:
Respective percentage change = a + b + (ab / 100)
a = 20
b = −20
Total change = 20 − 20 + (20 × −20 / 100) = −4%