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Price of a house came down by 20% during recession. After one year, the price increased by 25%. What was the effective change percent in the price of house over the original price?

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Price of a house came down by 20% during recession. After one year, the price increased by 25%. What was the effective change percent in the price of house over the original price?
1). 0%
2). 5%
3). -5%
4). 10%


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1 answers

2 vote
Answered by on | Votes 2 |

Let the price of a house be Rs. 100

Given,

Price of a house came down by 20% during recession,

Price of a house during recession

= 100 - 100 × (20/100)

= 80

Price of a house during recession is Rs. 80

Given,

Price increased by 25%.

Price of a house after increment

= 80 + 80 × (25/100)

= 80 + 20

= 100

∴ Price after increment is Rs. 100 which is equal to original price of a house.

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