Q. The increase in the price of a certain item was 25%. Then the price was decreased by 20% and then again increased by 10%. What is the resultant increase in the price?

Explanation : 
Let’s assume the initial price of the item to be x.

After a 25% increase in price, the new price will be:
x + 0.25x = 1.25x

Next, the price is decreased by 20%. The new price will be:
0.8(1.25x) = 1x

Finally, the price is increased by 10%. The new price will be:
1.1(1x) = 1.1x

To find the resultant increase in price

we need to find the percentage increase from the initial price x to the final price 1.1x:
Resultant increase = [(1.1x – x) / x] x 100%
= (0.1x / x) x 100%
= 10%

Therefore, the resultant increase in the price is 10%. The correct answer is (b).