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A twenty percent increase followed by a twenty percent decrease does not restore the original price.

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Each change uses the current price as its base.

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Start with one hundred dollars. A twenty percent increase multiplies it by one point two, giving one hundred twenty dollars.

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The next decrease starts from that larger price.

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A twenty percent decrease multiplies one hundred twenty by zero point eight, leaving ninety six dollars.

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The combined multiplier is zero point nine six: ninety six percent of the original, a four percent decrease.

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For a twenty five percent increase followed by a ten percent decrease, multiply one point two five by zero point nine.

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The result is one point one two five, or one hundred twelve point five percent of the original.