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
Correct Answer: 40%
Explanation:
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 20% = 0.8 x 75 = 60
60 represents a reduction of 40 percent on the original.
