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At the beginning of the year, an item had a price of A. At the end of January, the price was increased by 60%. At the end of February, the new price was decreased by 60%. At the end of March, the new price was increased by 60%. At the end of April, the new price was decreased by 60%. On May 1st, the final price was approximately what percent of A?
Title
Four Percent Changes
Your Result
Correct
Difficulty
Hard
Your Pace
2:40
Others' Pace
3:01
Video Explanation
Text Explanation
The trap answer is 100%: a percent increase and percent decrease by the same percent do not cancel out.
Let’s say that the A = $100 at the beginning of the year.
End of January, 60% increase. New price = $160
End of February, 60% decrease: that’s a decrease of 60% of $160, so that only 40% of $160 is left.
10% of $160 = $16
40% of $160 = 4(16) = $64
That’s the price at the end of February.
End of March, a 60% increase: that’s a increase of 60% of $64.
10% of $64 = $6.40
60% of $64 = 6(6 + .40) = 36 + 2.4 = $38.40
Add that to the starting amount, $64:
New price = $64 + $38.40 = $102.40
End of April, 60% decrease: that’s a decrease of 60% of $102.40, so that only 40% of $102.40 is left.
At this point, we are going to approximate a bit. Approximate $102.40 as $100, so 40% of that would be $40. The final price will be slightly more than $40.
Well, what is slightly more than $40, as a percent of the beginning of the year price of $100? That would be slightly more than 40%.
Answer = (A)
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