If the price of a television set is increased by 25%. then by what percentage should the new price be reduced to bring the price back to the original level?
- A15%
- B25%
- C20%Correct
- D30%
Explanation
To find the correct answer, let us assume the original price of the television set is 100 units.
When the price is increased by 25 percent, the new price becomes 125 units.
To bring the price back to the original level of 100 units, the price must be reduced by 25 units.
The percentage reduction is calculated on the new price. Therefore, the calculation is 25 divided by 125, which equals 1/5.
Converting 1/5 into a percentage gives 20 percent.
Thus, the new price must be reduced by 20 percent to return to the original level. The correct option is C.
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