The price of sugar increased 20 percent in 2000 and 10 percent in 2001. By approximately what percent would the price at the end of 2001 have to be decreased to restore the price of the sugar to its pre2000 price?

Question

anonymous · Answer

Let x be the original price, then 2000 the price was 1.20 * x , 2001, it was 1.10 * 1.20 * x. 

to get back to x, cx = 1.10 * 1.20 x, so it would have to decrease by 1.10 * 1.20 , which is 32%