Q. The value of an investment increases by 25% in the first year and decreases by 20% in the second year. Compared to the original investment, the final value is:
✅ Correct Answer: (B)
No change
Explanation: Assume investment = 100. After a 25% increase it becomes 125. After a 20% decrease it becomes 100. Hence, there is no net change.
Explanation by: Mr. Dubey
Assume investment = 100. After a 25% increase it becomes 125. After a 20% decrease it becomes 100. Hence, there is no net change.