The price of an item is increased by 40%. By what percent should the new price…

2023

The price of an item is increased by 40%. By what percent should the new price be decreased to bring it back to the original price?

  1. A.

    40

  2. B.

    30

  3. C.

    28.57

  4. D.

    32

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Correct answer: C

Solution: Find the percent decrease needed to return the price to the original.

  1. Let the original price be 100.

  2. After a 40% increase the new price is 100 × 1.40 = 140.

  3. Let x be the percent decrease required. Then 140 × (1 − x/100) = 100.

  4. Solve: 1 − x/100 = 100/140 = 5/7, so x/100 = 1 − 5/7 = 2/7, hence x = 200/7 ≈ 28.571...

Answer: Decrease the new price by 200/7 percent, which is approximately 28.57%.

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