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

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

Options:

  1. $80
  2. $85
  3. $90
  4. $95

Correct Answer: $85

Solution:

New price after increase = 80 + (25% of 80) = 80 + 20 = $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 20% discount.

Practice Questions

Q1
A store increases the price of a product by 25% and then offers a 20% discount. If the original price was $80, what is the final price after the discount?
  1. $80
  2. $85
  3. $90
  4. $95

Questions & Step-by-Step Solutions

A store increases the price of a product by 25% and then offers a 20% discount. 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. To do this, multiply 80 by 0.25 (which is 25% in decimal form). This gives you 20.
  • Step 3: Add the increase to the original price. So, $80 + $20 = $100. This is the new price after the increase.
  • Step 4: Now, calculate the discount. Find 20% of the new price ($100). To do this, multiply 100 by 0.20 (which is 20% in decimal form). This gives you 20.
  • Step 5: Subtract the discount from the new price. So, $100 - $20 = $80. This is the final price after the discount.
  • 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 multiple percentage changes.
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