SOLUTION: A company reduced the price of an article by 5%.by what per cent a retailer must increase the new price so as to sell the article at the old price ?

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Question 721100: A company reduced the price of an article by 5%.by what per cent a retailer must increase the new price so as to sell the article at the old price ?
Found 2 solutions by stanbon, Jstrasner:
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
A company reduced the price of an article by 5%.by what per cent a retailer must increase the new price so as to sell the article at the old price ?
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Let original price be "x":
After reduction: 0.95x
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Solve:
k(0.95x) = x
0.95k = 1
k = 1/0.95 = 1.0526
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Ans: Increase price by 5.26%
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Cheers,
Stan H.
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Answer by Jstrasner(112) About Me  (Show Source):
You can put this solution on YOUR website!
Hey,
So to solve this problem, we need to think of the price as a value, like x. So if the original price was x, then when the company reduced the price by 5%, the equation would look like this:
x - (x)(5%) => x-.05x => x(1-.05) => x(.95)
Now, if we want to get back to the original price, we need to get .95x back to 1x. So the difference between 1 and .95 is .05 which translates to 5%. So the retailed must increase the new price by 5% to sell the article at the old price.
I hope this helps!