Question

An antique store increases all of its prices by $40\%$, and then announces a $25\%$-off-everything sale. What percent of the original prices (before the increase) are the new prices?

Answer 1

Let X be the original price. 
Do a 40% increase we get the price: X+0.4X=1.4X
Doing a 25% off we get the new price:
(1.4X)-0.25(1.4X)=1.05X 
                            =X+0.05X.
The new prices are 5% increase from the original price. 

Answer 2

The most likely solution is 105%