Answer:
See below
Step-by-step explanation:
This can be easily understood if we take the original price to be "100".
First, we need to decrease this by 20%. That would be:
20/100 = 0.2
100 * 0.2 = 20
100 - 20 = 80
Thus, Sale Price = $80
Now, price will be increase 20% on this $80. That would be:
20/100 = 0.2
0.2 * 80 = 16
80 + 16 = $96
Clearly the item hasn't been restored to original price. The price is in fact $4 less (or 4% less).
Note: We took $100 as original price. You can take any price and follow this rule, you will see that the price is ALWAYS 4% less than original.
