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An antique store increases all of its prices by 40%, and then announces a 25%-off-everything sale. What percent of the original prices (before the increase) is the new prices?

Guest Feb 2, 2019

#2**+1 **

Suppose the price of the average item =$100

Then an increase of 40% will up the price to $140

$140 - ($140*0.25) =$105 - the average price of an item after 25% discount.

Therefore the "net" increase after the original 40% increase and the subsequent 25% discount will be:

**$105 - $100 =$5, or 5%.**

**Note: It would have been exactly the same had the store raised all prices by 5% instead of raising them by 40% and then discounting them by 25%.**

Guest Feb 2, 2019

edited by
Guest
Feb 2, 2019

#2**+1 **

Best Answer

Suppose the price of the average item =$100

Then an increase of 40% will up the price to $140

$140 - ($140*0.25) =$105 - the average price of an item after 25% discount.

Therefore the "net" increase after the original 40% increase and the subsequent 25% discount will be:

**$105 - $100 =$5, or 5%.**

**Note: It would have been exactly the same had the store raised all prices by 5% instead of raising them by 40% and then discounting them by 25%.**

Guest Feb 2, 2019

edited by
Guest
Feb 2, 2019