Question

An item that originally cost $100 is decreased by 8%. The reduced price is then increased by 8%.

The resulting price is _____.

Answer 1

Then wouldn't it go back to $100?

Answer 2

Obviously its $92 because the 100% reduced by 8% is 92%.

Answer 3

but then it increases again

Answer 4

Yep.then it will be $100 again

Answer 5

so i was right

Answer 6

Politely disagree with the previous responses. This is a very common trap with percentages (decreasing by a% and then increasing by a% does *not* take you back to the original value)

to see this in action, if we decrease $100 by 8%, we get 92. now, the reduced price of 92 gets increased by 8% to get 92 * 1.08 = $99.36