4. a cable television company charged $20.50 per month for premium channels last year. this year, they are…

4. a cable television company charged $20.50 per month for premium channels last year. this year, they are having a special and are charging $16.40 per month for premium channels. which of the following statements is true about this situation? a. the cable company increased the monthly charge by 25%. b. the cable company decreased the monthly charge by 20%. c. the cable company increased the monthly charge by 20%. d. the cable company decreased the monthly charge by 25%.

4. a cable television company charged $20.50 per month for premium channels last year. this year, they are having a special and are charging $16.40 per month for premium channels. which of the following statements is true about this situation? a. the cable company increased the monthly charge by 25%. b. the cable company decreased the monthly charge by 20%. c. the cable company increased the monthly charge by 20%. d. the cable company decreased the monthly charge by 25%.

Answer

Explanation:

Step1: Calculate the change in price

Let the original price be $P = 20.50$. We want to find the percentage - change formula: $\text{Percentage change}=\frac{\text{New price}-\text{Original price}}{\text{Original price}}\times100%$. The new price is $N = 16.40$.

Step2: Substitute values into the formula

First, find the difference: $N - P=16.40 - 20.50=- 4.10$. Then, calculate the percentage change: $\frac{16.40 - 20.50}{20.50}\times100%=\frac{-4.10}{20.50}\times100%=- 20%$. A negative percentage change means a decrease.

Answer:

B. The cable company decreased the monthly charge by 20%.