A merchant sells a product for $400 after applying a discount of 20%. What was t

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Question: A merchant sells a product for $400 after applying a discount of 20%. What was the marked price? (2023)

Options:

Correct Answer: $500

Exam Year: 2023

Solution:

Let the marked price be x. Selling Price = x - (20/100 * x) = 400. Thus, 0.8x = 400, x = 500.

A merchant sells a product for $400 after applying a discount of 20%. What was the marked price? (2023)

A merchant sells a product for $400 after applying a discount of 20%. What was the marked price? (2023)

Step 1: Understand that the selling price is the price after the discount is applied.
Step 2: Let the marked price be represented by 'x'.
Step 3: Calculate the discount amount, which is 20% of the marked price. This can be written as (20/100) * x.
Step 4: The selling price after the discount is applied can be expressed as: Selling Price = Marked Price - Discount Amount.
Step 5: Substitute the values into the equation: Selling Price = x - (20/100 * x).
Step 6: Simplify the equation: Selling Price = x - 0.2x = 0.8x.
Step 7: We know the selling price is $400, so set up the equation: 0.8x = 400.
Step 8: To find 'x', divide both sides of the equation by 0.8: x = 400 / 0.8.
Step 9: Calculate the value: x = 500.
Step 10: Therefore, the marked price is $500.

Percentage Discount Calculation – Understanding how to calculate the selling price after applying a percentage discount to the marked price.
Algebraic Manipulation – Using algebra to isolate variables and solve for the marked price.