A shop offers a 20% discount on an item with a list price of 125. What is the sale price?

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Multiple Choice

A shop offers a 20% discount on an item with a list price of 125. What is the sale price?

Explanation:
Percent discounts are found by applying the discount rate to the original price and subtracting that amount. Here, 20% of 125 is 0.20 × 125 = 25. Subtracting gives 125 − 25 = 100. So the sale price is 100. The other numbers would come from either no discount (125), a smaller discount (105, which is 20 off, or a 16% reduction), or a price increase (150).

Percent discounts are found by applying the discount rate to the original price and subtracting that amount. Here, 20% of 125 is 0.20 × 125 = 25. Subtracting gives 125 − 25 = 100. So the sale price is 100. The other numbers would come from either no discount (125), a smaller discount (105, which is 20 off, or a 16% reduction), or a price increase (150).

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