Question: A store increases the price of an item by 25% and then offers a discount of 20% on the new price. What is the final price if the original price was $80?
Options:
Correct Answer: $75
Solution:
New price after increase = 80 * 1.25 = $100. Discount = 20% of 100 = $20. Final price = 100 - 20 = $80.