The original cost of coat was increased by 40% at the beginning of 2015. In March 2015, the new price was reduced by 20%

AAPL wrote: ↑

Mon Jan 25, 2021 3:03 am

Magoosh

The original cost of coat was increased by 40% at the beginning of 2015. In March of 2015, the new price was reduced by 20%, and the cost remained at this new reduced price. Chris had a coupon for $50 discount and, in April, used the coupon to buy the coat at the further reduced price. There was no tax or additional fee on the purchase. If Chris paid $96.60 for the coat, which would be the original price of the coat?

A. $2.50
B. $100
C. $104.83
D. $120
E. $130

OA E

Solution:


Since Chris paid $96.60 for the coat after the $50 coupon, the price of the coat before the coupon would be 96.6 + 50 = $146.60. Since this price is after a reduction of 20% from the previous price, the previous price is 146.6/0.8 = $183.25. Finally, since $183.25 is after an increase of 40% from the original price, the original price of the coat is 183.25/1.4 = $130.89.

(Note: We see that the choice closest to $130.89 is $130. However, we believe there is a typo in the problem. The amount Chris paid should be $95.60, not $96.60. In that case, the answer will be exactly $130.)

Answer: E