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MathNet 2013 Question 49

Math Olympiad Vault · MathNet 2013

Question 49

When a factory modernized its equipment, the productivity grew by $25\%$. Before, the management decided to fire $20\%$ of the employees. By how many $\%$ has the number of final products in this factory changed after both actions?
(A) It has decreased by $5\%$.
(B) It has decreased by $2.5\%$.
(C) It has decreased by $2\%$.
(D) It has not changed.
(E) It has grown by $5\%$.