Tania believes that if she increases the price of an item (mark up) by 10% and then decrease it (mark down) by 10%, she will have the original tag price again. Her teacher tells her that her computation is incorrect. Why is tania wrong? Justify your answer.

Question

Kamari Parsons

Mathematics

24 June, 11:49

Tania believes that if she increases the price of an item (mark up) by 10% and then decrease it (mark down) by 10%, she will have the original tag price again. Her teacher tells her that her computation is incorrect. Why is tania wrong? Justify your answer.

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Answers (1)

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Killian Barnett · Answer 1

She is incorrect as 10% of the higher marked up price is larger than 10% of the original price.

For example: If you mark up $100 by 10% you get $110.

If you mark down $110 by 10%, you will get $99, as 10% of $110 ($11) is larger than 10% of $100 ($10).