Question
A subscription costs €80. Its price rises by 25%, then the new price is discounted by 20%. What is the final price?
- a.€76
- b.€80
- c.€84
- d.€100
Correct answer
B. €80
Full reasoning
- 1Write each change as a multiplier: 1.25 for the increase and 0.80 for the discount.
- 2Calculate 80 × 1.25 × 0.80 = 80.
- 3The percentage changes use different bases: the €20 increase is 25% of €80, while the €20 decrease is 20% of €100.
- 4To undo a 25% rise, divide by 1.25. The inverse multiplier is 0.80, not 0.75.
Why each choice is right or wrong
Choice A
Subtracting percentage points treats both changes as if they used the original base.
Choice B
Correct. Multiplying €80 by 1.25 gives €100; the subsequent 20% discount subtracts €20, leaving €80.
Choice C
A net increase of five percentage points is not the same as successive multipliers.
Choice D
This is the price after the 25% increase, before applying the required 20% discount to that new price.
Related formula
Successive percentage changes
final = initial × (1 + r1) × (1 + r2)
Assumptions: Each change is relative to the value immediately before that change.
Related topic and practice
This worked example is free to read. A free account unlocks practice questions for this exam.
Sources
Original authored exercise; no database question ID and no protected or official exam-bank content. Specialist review pending.
- Prealgebra 2e, Section 6.5: Solve Proportions and Their Applications — OpenStax. Accessed 2026-07-11. OpenStax textbook content is CC BY 4.0; attribute and avoid verbatim reuse beyond short cited references.
Sources and corrections
Sources last checked 2026-09-13Every source cited on this page was checked on the date shown, and we update the page when a source changes. If something looks wrong, tell us and we'll recheck it.