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The price of the sweater was reduced by 40%
Step-by-step explanation:
Step 1; Cost before reduction was $20. The cost after reduction was 12$. Cost reduced= cost before reduction - cost after reduction
Cost reduced= $20 - $12 = $8
Step 2; We must find how much of the cost was reduced from the initial cost i.e. how much $8 is to $20. To do this we must convert it into a percentage. We divide the $8 with the $20 to get a value. This value must be multiplied with a 100 to be converted into a percentage.
Cost by which sweater was reduced= * 100 = 0.4 * 100 = 40
So the price of the sweater was reduced from $20 to $8 which equates to a reduction in 40%.