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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?

 Feb 2, 2019

Best Answer 

 #2
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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%.

 Feb 2, 2019
edited by Guest  Feb 2, 2019
 #1
avatar+18293 
+1

100 x 1.4 x .75 = 100*1.4*.75 = 105          105%

 Feb 2, 2019
 #2
avatar
+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

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