If population first grows by 40 percent and then declines by 25 percent, what is the final change relative to the initial population?

Correct answer: 5 percent increase

The correct answer is A: a 5 percent increase. Take the initial population as 100. A 40 percent increase makes it 140. The later 25 percent decrease is calculated from 140, so the decrease is 140 × 0.25 = 35. The final population is 140 − 35 = 105. Compared with the initial 100, the final value is 5 higher, which is a 5 percent increase. Option A is correct. Option B is wrong because the final value is above the starting value. Option C incorrectly subtracts 25 from 40 and ignores the change in the base; successive percentages cannot normally be subtracted directly. Option D is wrong because the two changes do not cancel: a 25 percent decrease after a 40 percent increase removes 25 percent of 140, not 25 percent of 100. A useful multiplier method is 1.40 × 0.75 = 1.05, showing that the final amount is 105 percent of the original.