The price of an article is first increased by 20% and later on decreased by 25% due to reduction in sales. Find the net percentage change in final price of the article?

Answer: Option D

Let the price of article is Rs. 100
First increase % = 20%
After increase, price of article
$$\begin{array}{rl}& =100\times \frac{120}{100}\\ & =\text{Rs}\text{.120 }\end{array}$$
Second decrease % = 25%
After decrease, price of article
$$\begin{array}{rl}& =120-\frac{120\times 25}{100}\\ & =\text{Rs}\text{. }90\end{array}$$
Net change percent in price
$$\begin{array}{rl}& =\frac{100-90}{100}\times 100\\ & =\frac{10}{100}\times 100\\ & =10\%\end{array}$$