The price of a bike is first increased by 21% and later on, it is decreased by 34% due to reduction in sales. Find the net percentage change in the final price of the bike.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Decrease of 20.14%.
Let a = 21 and b = -34
Net percentage change = (1 + 21/100)(1 + (− 34/100)) − 1 × 100
Net percentage change = (1 + 0.21)(1 - 0.34) - 1 × 100
Net percentage change = 1.21 × 0.66 - 1 × 100
Net percentage change = 0.7986 - 1 × 100
Net percentage change = -0.2014 × 100
Net percentage change = -20.14%