Critical Thinking
Hard
2 min
A product price is reduced by 10% and then increased by 10%. A customer claims the price is back to its original value. Is the claim correct?
Hint
Use an original price of 100.
Answer
No. The final price is 1% lower than the original.
Explanation
Starting at 100, a 10% reduction gives 90. Increasing 90 by 10% gives 99.
Step-by-Step Solution
100 → 90.
90 × 1.10 = 99.
Final price is 1% lower.
90 × 1.10 = 99.
Final price is 1% lower.