The population of a city increases by 25% in the first year and decreases by 20% in the second year. What is the net percentage change after 2 years?
Show answer & explanation
Correct answer: B
Explanation
Increase in the first year = 25%
Decrease in the second year = 20%
According to the formula:
Final Value = Initial Value
Let the initial population be 100.
After the first year = 100 × 1.25 = 125
After the second year = 125 × 0.8 = 100
Therefore, the final population = 100
Net change = 100 − 100 = 0%