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HomeGMATquantitativeaptitudeQuantitative Reasoning › A price first rises 25% then falls 20%. The net …

A price first rises 25% then falls 20%. The net effect on the original price is:

Aa 45% rise
Ba 5% fall
Cno change
Da 5% rise
Answer & Solution
Correct answer: C. no change
1.25 × 0.80 = 1.00 ⟹ no net change.
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