The increase in the price of a certain item was 25%, And then the price was decreased by 20% and then again increased by 10%, What is the resultant increase in the price?

Correct Option (2)

To determine the resultant increase, we can assume an initial price for the item. Let the initial price be Rs. 100.

• First, the price increased by 25%. The new price becomes: Rs. 100 + (25/100) * Rs. 100 = Rs. 100 + Rs. 25 = Rs. 125.
• Next, the price decreased by 20%. The price after this decrease is calculated on the current price of Rs. 125: Rs. 125 - (20/100) * Rs. 125 = Rs. 125 - Rs. 25 = Rs. 100.
• Finally, the price again increased by 10%. This increase is applied to the current price of Rs. 100: Rs. 100 + (10/100) * Rs. 100 = Rs. 100 + Rs. 10 = Rs. 110.

The final price is Rs. 110, and the initial price was Rs. 100. The net increase in price is Rs. 110 - Rs. 100 = Rs. 10.

The resultant percentage increase is (Net Increase / Initial Price) * 100 = (Rs. 10 / Rs. 100) * 100 = 10%.

Incorrect Options:

Options 1 (5%), 3 (12.5%), and 4 (15%) are incorrect. These values do not reflect the accurate cumulative effect of the sequential percentage changes. The correct calculation, considering each percentage change applied to the successively updated price, yields a 10% resultant increase.