When a figure undergoes an initial 10% elevation followed by a 10% reduction, the resulting value becomes:__________?
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Answer: B. decreased by 1 %
Explanation
An initial ten percent increase multiplies the base value by one point one. A subsequent ten percent reduction multiplies the adjusted value by zero point nine. Multiplying one point one by zero point nine gives zero point nine nine, showing a decrease. Successive percentage changes do not offset each other due to the changing base value. A net multiplier of zero point nine nine represents a one percent overall reduction. Percentage math principles govern iterative price adjustments in commercial transactions.
Retail discounting strategies often use successive markups and markdowns to manage inventory. Financial analysts apply net change formulas to evaluate volatile asset price movements. Understanding sequential percentages prevents common errors in statistical data interpretation. Option A is incorrect because opposing percentage shifts alter the final baseline value. Option C incorrectly assumes a net increase instead of a net percentage decrease. Option D is incorrect because the correct answer of a one percent decrease is listed.
- Subject
- Mathematics
- Category
- Mathematics
- Topic
- —
- Difficulty
- medium
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