Question

A department store sells logo shirts at an original price of $20. Every month that a shirt doesn’t sell, the store reduces the selling price by 25%. Store employees get a 50% discount off the current price. Macy works at the store and sees the shirts going into the second markdown month. What will the pre-tax price of the shirt be for Macy?

Answer 1

Answer:

the answer is 5.63

Answer 2

Given:
Original price = 20
reduces selling price by 25% every month it's not sold.

First markdown month:
20 * (100%-25%) = 20 * 75% = 15

Second markdown month
15 * 75% = 11.25

Macy, employee gets a 50% discount off the current price.
11.25 * 50% = 5.625
11.25 - 5.625 = 5.625 or 5.63

The pre-tax price of the shirt for Macy will be $5.63