i. The price of a cycle is reduced by 25 per cent. The new price is reduced by a further 20 per cent. The two reductions together are equal to a single reduction of

- 45.00%
- 40.00%
- 35.00%
- 32.50%

Answer and Explanation

The Correct answer is : 40.00%

Let the original price of the cycle be 100.

After the first reduction the price will be 75.

This new price is then reduced by ${\frac{20}{100}=0.8\times75}$

60 represents a reduction of 40 percent on the original.

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