Question

A car dealership was trying to sell a used car that no one wanted. First, they tried to sell it for 10% off the marked price. Then they tried to sell it for 20% off the first sale price. Finally, they offered it for 25% off the second sale price, and someone bought it for $3,240. What was the original sale price?

Answer 1

Answer:

Original Sale Price = $6000

Explanation:

Lets say that the original Sale price is 100%. When the first discount is offered, the car is discounted by 10% and offered for 90% of the original price.

The second discount is offered as 20% off from the discounted sale price. Thus the car is now offered at,

Price after Second Discount = 90% * (1 - 20%)  =  72% of the original price

Now the final discount is offered as further 25% off from the Second Discounted price which is already 72% of the original price. Thus the price after final discount will be,

Price after final discount = 72% * (1 - 25%)  =  54% of the original price

We know the price after final discount is 54% of the original price and we are provided the amount as 3240. Thus if 54% of original price is 3240, then the original price will be,

Original Sale Price = 3240 * 100%/54%

Original Sale Price = $6000