Q: The original price of an article was reduced by 25%. During a special sale the new price was decreased by 10%. By approximately what percentage would the new price have to be increased in order to restore the price of the article to its original amount?

(Target Audience: GMAT)

A. 32.5%

B. 35%

C. 48%

D. 65%

E. 67.5%

Answer: OPTION C

Explanation: Generic Way

Let the price of article = x

Price after reduction = (100-25)% of x = 75% of x

Price after reduction during sale = (100-10)% of 75% of x = 67.5% of x

Increase in new price = x – 67.5%of x = 32.5% of x

Percentage increase = 32.5% of x67.5% of x= 48% approximately

OPTION C

Explanation: HolaMaven Way

Option B: 25%+10% = 35%, too easy and not an answer

Option D: (100-35)% = 65%, again too easy

Option E: (100-25)% = 75% – 10%*75* = 67.5% Not possible as it’s only decrease value

Option A: (100-67.5)%=32.5%, again not possible as this will increase value to 100% but we need to calculate % increase

Thus OPTION C