A merchant raises the price of a $100 item by 20%. After finding that she cannot sell the item at the higher price, she

[BTGmoderatorDC]

A merchant raises the price of a $100 item by 20%. After finding that she cannot sell the item at the higher price, she discounts it by 20%. What is the final price of the item?

A. $96
B. $97
C. $98
D. $99
E. $100



OA A

Source: Princeton Review

[swerve]

A merchant raises the price of a $100 item by 20%. After finding that she cannot sell the item at the higher price, she discounts it by 20%. What is the final price of the item?

A. $96
B. $97
C. $98
D. $99
E. $100



OA A

Source: Princeton Review

Here, we have

\(100 \cdot \dfrac{120}{100} = 120\)

\(120 \cdot \dfrac{80}{100} = 96\)

Therefore, A

[Scott@TargetTestPrep]

A merchant raises the price of a $100 item by 20%. After finding that she cannot sell the item at the higher price, she discounts it by 20%. What is the final price of the item?

A. $96
B. $97
C. $98
D. $99
E. $100



OA A

Solution:

The final price of the item is:

100 x 1.2 x 0.8 = 120 x 0.8 = $96

Answer: A