If the price of an item is increased by 30% and then allows two successive discounts of 10% and 10%, in the last the price of an item is ________.

Given:

If the price of an item is increased by 30% and then allows two successive discounts of 10% and 10%, in the last the price of an item is ________.

Formula used:

Let the original price be ₹100.

New price after 30% increase = ₹100 × (1 + 30/100) = ₹100 × 1.30 = ₹130

First discount of 10% = ₹130 × (1 - 10/100) = ₹130 × 0.90 = ₹117

Second discount of 10% = ₹117 × (1 - 10/100) = ₹117 × 0.90 = ₹105.3

Calculation:

Original price = ₹100

Final price after increase and discounts = ₹105.3

⇒ Price change = ₹105.3 - ₹100 = ₹5.3

⇒ Percentage change = (₹5.3 / ₹100) × 100 = 5.3%

Since the final price is higher than the original price by 5.3%, it is an increase.

∴ The correct answer is option 4 (increased by 5.3%).