Multiple choice

The cost of a coat to a merchant was $40. The merchant fixes the selling price, so that if the selling price was later discounted by 20 percent, the selling price would be 25 percent greater than the cost of the coat. What is the original selling price of the coat?

  1. $150.00
  2. $62.50
  3. $52.50
  4. $50.00
  5. $37.50
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let S be the selling price. Discounted price = 0.8S. We are told 0.8S = 1.25 * 40 = 50. Therefore, S = 50 / 0.8 = 62.50.

AI explanation

The target discounted price must be 25% greater than the \$40 cost, which calculates to \$40 + $10 = $50. Because this \$50 results from a 20% discount on the original selling price, the original selling price represents 80% of itself. Setting up the equation 0.80 * Original Selling Price = 50, we find the original selling price to be \$62.50.

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