Question

The price of a pair of sneakers was $80 for the last six months of last year. On January 1st, the price increased 20%. After the price increase, an employee bought these sneakers with a 10% employee discount. What price did the employee pay?

Answer 1

Answer:

$86.40

Explanation:

Businesses increase and reduce prices based on prevailing market conditions. If the price of a good has appreciated in the open marketbthen businesses tend to also increase their price.

When there is need to attract more customers or there is promotion of a product a discount (price reduction) can be used.

The price of the pair of sneakers increased in January, that is 100+20= 120% of the original price.

Price after increase= 1.2* 80= $96

Afterwards an employee bought the sneakers at a 10% discount that is 100-10= 90% of original price

Price after discount= 0.9* 96= $86.40