If the price of an article is decreased by 20 and then the new price is increased by 25 then what is...........

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If the price of an article is decreased by 20% and then the new price is increased by 25%, then what is the net change in the price?

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5% increase

5% decrease

Cannot be determined due to insufficient data

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Explanation:

Let the initial price be Rs. 100
New price on decreasing the original price by 20% = 100 – 20% of 100 = 100 – 20 = Rs. 80
Now, the final price on increasing the previous price by 25% = 80 + 25% of 80 = 80 + 20 = Rs. 100
So, there is no net change in price.