The cost of an article was Tk. 75. The cost was first increased by 20% and later on it was reduced by 20%. The present cost of the article is:

Question: The cost of an article was Tk. 75. The cost was first increased by 20% and later on it was reduced by 20%. The present cost of the article is:

Solution:
Initial Cost = Tk. 75
After 20% increase in the cost, it becomes,
(75 + 20% of 75)
= 75 + 15
= Tk. 90
Now, Cost is decreased by 20%, So cost will become,
(90 - 20% of 90)
= 90 - 18
=Tk. 72
So, present cost is Tk. 72.