What is the final price after a 25% discount on a $80 item followed by a 5% increase?

What is the final price after a 25% discount on a $80 item followed by a 5% increase?

• A. $66
• B. $60
• C. $63
• D. $59

Answer: (C)

Sequential percentage changes can’t be treated as a single step on the original amount; you apply each change to the current price. A 25% discount on 80 reduces the price by 20, leaving 60. Then a 5% increase on that new price adds 3, bringing it to 63. Another way to see it is to multiply by 0.75 for the discount and then by 1.05 for the increase: 80 × 0.75 × 1.05 = 63. The final price is 63 dollars.

Sequential percentage changes can’t be treated as a single step on the original amount; you apply each change to the current price. A 25% discount on 80 reduces the price by 20, leaving 60. Then a 5% increase on that new price adds 3, bringing it to 63. Another way to see it is to multiply by 0.75 for the discount and then by 1.05 for the increase: 80 × 0.75 × 1.05 = 63. The final price is 63 dollars.