ISEE Quantitative Comparisons Question 174: Answer and Explanation
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Question: 174
15. The price of an item initially is $2.50. The price is then decreased by 20%, and the resulting price is then increased by 20%.
- A. The quantity in Column A is greater.
- B. The quantity in Column B is greater.
- C. The two quantities are equal.
- D. The relationship cannot be determined from the information given.
Correct Answer: B
Explanation:
B
The initial price of $2.50 fell after a 20% decrease to $2.00: 0.20 × $2.50 = $0.50, and $2.50 – $0.50 = $2.00. The new price of $2.00 went up after a 20% increase to $2.40: 0.20 × $2.00 = $0.40, and $2.00 + $0.40 = $2.40.
In this type of question, the original price does not matter, so plug in $100 to keep things simple. Subtracting 20% brings the price to $80. Adding 20% brings the price to $96. Thus decreasing a price by a percent and then increasing the price by the same percent will yield a price lower than the original amount.