If the price of an item increases by 25%, by what percent must it be decreased to bring it back to the original price?
- A. 20% ✓
- B. 25%
- C. 15%
- D. 30%
Correct answer
A. 20%
Explanation
New price = 125% of original = 1.25x. Required decrease = (0.25/1.25) x 100 = 20%.