A company has a target to reduce the number of its stores by 40% over the next two years. At the end of the first year it has reduced the number of its stores by 20% If the company is going to reach its target, it must reduce the number of its stores

by 25%

Step-by-step explanation:

We can assume that the company originally had 100 stores and it plans to keep only 60 open after two years. If it was able to close 20 stores during the first year, the total number of stores remaining open was 100 - 20 = 80. Since it needs to decrease the number of stores to 60, it must reduce the number of stores by 20/80 = 0.25 or 25%.

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