A data plan price increases by 12%, then a 10% promotional discount is applied to the new price. What is the net percentage change from the original price?

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Study for the ATandT Information Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Multiple Choice

A data plan price increases by 12%, then a 10% promotional discount is applied to the new price. What is the net percentage change from the original price?

Explanation:
When changes happen in sequence, you multiply the factors. A 12% increase makes the price 1.12 times the original. Then a 10% discount on that new price reduces it to 90% of 1.12, which is 1.12 × 0.90 = 1.008 times the original. That means the final price is 100.8% of the original, so the net change is +0.8%. Intuitively, the discount partially offsets the increase, but not completely, leaving a small overall rise.

When changes happen in sequence, you multiply the factors. A 12% increase makes the price 1.12 times the original. Then a 10% discount on that new price reduces it to 90% of 1.12, which is 1.12 × 0.90 = 1.008 times the original. That means the final price is 100.8% of the original, so the net change is +0.8%. Intuitively, the discount partially offsets the increase, but not completely, leaving a small overall rise.

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