The price of an item has increased 15% since last year. However, a person can buy the item for a 25% employee discount. The empl
oyee pays $172.50. What was the price last year? Show work to justify your answer.
Group of answer choices
1 answer:
Answer: $200
Explanation:
The employee pays $172.50 and he got 25% employee discount.
If the cost is $100, he pays $(100 - 25) = $75.
So, employee pays =
100
75
⋅
172.50
= $230.00.
Again, price was increased by 15% last year. So whose cost is $100
is sold by $(100+15) = $115.
When sell price is $115, then cost price is $100. Then,
when sell price is $230, then cost price is
100
115
⋅
230
= $200.
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