A ₱1,000 item is marked up by 20%, then the new price is reduced by 20%. What is the final price?

Correct answer: C. ₱960

After the markup: ₱1,000 × 1.20 = ₱1,200. After the 20% reduction: ₱1,200 × 0.80 = ₱960. The two changes do not cancel, because the second 20% is taken from a larger amount.

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Answer and explanation

The correct answer is C. ₱960

After the markup: ₱1,000 × 1.20 = ₱1,200. After the 20% reduction: ₱1,200 × 0.80 = ₱960. The two changes do not cancel, because the second 20% is taken from a larger amount.

Topic: Percentage and Interest Problems MCQs · Subject: Numerical Ability