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A store increases the price of a product by 25% and then offers a discount of 20

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Question: A store increases the price of a product by 25% and then offers a discount of 20%. If the original price was $80, what is the final price after the discount?

Options:

  1. $72
  2. $76
  3. $80
  4. $64

Correct Answer: $72

Solution: 

New price after increase = 80 + 0.25 * 80 = 100. Discount = 20% of 100 = 20. Final price = 100 - 20 = $80.

A store increases the price of a product by 25% and then offers a discount of 20

Practice Questions

Q1
A store increases the price of a product by 25% and then offers a discount of 20%. If the original price was $80, what is the final price after the discount?
  1. $72
  2. $76
  3. $80
  4. $64

Questions & Step-by-Step Solutions

A store increases the price of a product by 25% and then offers a discount of 20%. If the original price was $80, what is the final price after the discount?
  • Step 1: Start with the original price of the product, which is $80.
  • Step 2: Calculate the increase in price by finding 25% of $80. This is done by multiplying 80 by 0.25.
  • Step 3: The increase is 80 * 0.25 = $20.
  • Step 4: Add the increase to the original price to find the new price. This is $80 + $20 = $100.
  • Step 5: Now, calculate the discount. Find 20% of the new price ($100) by multiplying 100 by 0.20.
  • Step 6: The discount is 100 * 0.20 = $20.
  • Step 7: Subtract the discount from the new price to find the final price. This is $100 - $20 = $80.
  • Percentage Increase and Decrease – Understanding how to calculate a percentage increase followed by a percentage decrease on a given price.
  • Order of Operations – Applying the correct sequence of operations when dealing with increases and discounts.
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