The price of an item increased by 20%, and then a 25% discount was applied. What is the net percentage change in the price?

5% increase

10% increase

10% decrease

5% decrease

Increase by 20%:100+20% of 100=100+20=120

Increase by 20%:
$100 + 20% of 100 = 100 + 20 = 120$
Apply a 25% discount on the increased price:
$25% text{ of } 120 = 30 Rightarrow 120 - 30 = 90$

So, the final price is 90, and the original was 100.