Subjects algebra

Net Percent Change

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1. Let's denote the original price of the product as $P$. 2. The price is first increased by 25%, so the new price after the increase becomes: $$P_{new1} = P \times (1 + 0.25) = 1.25P$$ 3. Next, this increased price is decreased by 20%, so the price after this decrease becomes: $$P_{new2} = P_{new1} \times (1 - 0.20) = 1.25P \times 0.80 = 1.00P$$ 4. The final price after these successive changes is $1.00P$, which is equal to the original price $P$. 5. To find the net percentage change, we use the formula: $$\text{Net percentage change} = \left(\frac{P_{new2} - P}{P}\right) \times 100 = \left(\frac{P - P}{P}\right) \times 100 = 0\%$$ **Answer:** The net percentage change in the price is 0%. The price returns to its original value after the two changes.