SOLUTION: The price of an article increased by 20 percent and then increased by 25 percent, but the latest price is decreased by 10 percent. what is the effective percentage increase in the

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Question 866292: The price of an article increased by 20 percent and then increased by 25 percent, but the latest price is decreased by 10 percent. what is the effective percentage increase in the price?
Answer by josgarithmetic(39618) About Me  (Show Source):
You can put this solution on YOUR website!
The 10% decrease could be thought of as a price change by factor of 0.90.

Step 1:
p*(1.2)

Step 2:
(p*1.2)(1.25)

Step 3:
p(1.2)(1.25)(0.90)

The overall factor produced in the three steps are %281.2%29%281.25%29%280.9%29=1.35, which means 35% price increase from the original price.