The price of a bike is first increased by 21% and later on, it is decreased by 34% due to reduction in sales. Find the net percentage change in the final price of the bike.

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Question

This question was previously asked in

SSC Selection Post 2024 (Matriculation Level) Official Paper (Held On: 21 Jun, 2024 Shift 1)

Answer 1

Given:

Initial increase in price = 21%

Subsequent decrease in price = 34%

Formula Used:

Net percentage change = \((1 + \frac{a}{100})(1 + \frac{b}{100}) - 1 × 100 \)

Where a = initial percentage change and b = subsequent percentage change

Calculation:

Let a = 21 and b = -34

Net percentage change = \((1 + \frac{21}{100})(1 + \frac{-34}{100}) - 1 × 100 \)

Net percentage change = (1 + 0.21)(1 - 0.34) - 1 × 100

Net percentage change = 1.21 × 0.66 - 1 × 100

Net percentage change = 0.7986 - 1 × 100

Net percentage change = -0.2014 × 100

Net percentage change = -20.14%

The net percentage change in the final price of the bike is a decrease of 20.14%.