An item that originally cost $100 is decreased by 8%. The reduced price is then increased by 8%.

Question

The resulting price is _____.

$92
between $92 and $100
$100
more than $100

Answer 1

Let's break down the calculations step by step.

1. Calculating the price after the 8% decrease:

   • Original price = $100
   • Amount of decrease = 8% of $100 = 0.08 × 100 = $8
   • Reduced price = Original price - Amount of decrease = $100 - $8 = $92

2. Calculating the price after the 8% increase on the reduced price:

   • New price (reduced price) = $92
   • Amount of increase = 8% of $92 = 0.08 × 92 = $7.36
   • Final price = New price + Amount of increase = $92 + $7.36 = $99.36

Now we can evaluate the resulting price:

• The final price after both adjustments is $99.36.

Therefore, the resulting price is between $92 and $100.