I don't get this discount/tax thing...?

Question

Price or cost of original: ___
Discount rate: 25%
Discount amount: ___
Sale Price: $225
Tax Rate: 8%
Tax Amount: 18
Final Cost: $243

Answer 1

The discount was $75, the original was $300.

The sale price is 75% of the original, so the sale price you know is 3/4 of the original price.

Answer 2

The other two posters are correct. The mistake I see most often with problems like these is: if you take off 25% for a sale then you just add 25% to get the original. This does NOT work!!! 25% of 225 is 56.25 and then if you add 225 and 56.25 you get 281.25 which is NOT the correct answer of 300. It just doesn't work. You need to set up an equation like poster #2 to get the correct answer.

Why doesn't it work? Once you take off 25% to reduce the price, then that price is reduced: when you add 25% of that, you are adding 25% of a reduced price and so you are adding too little, it doesn't cancel. How much do you have to add to figure the original price? You will only know that once you know the original price which you get by solving the equation.

The short cut is original price = reduced price /( 1 - percent reduction as a decimal). In this problem: 225/(1-.25) = 225/.75 =300

Answer 3

Since 225 was the sale price and the discount was 25% (or 1/4), then:

X = original price
X - (1/4)X = 225
(3/4)X = 225 // now multiply both sides by 4/3
(4/3)(3/4)X = 225(4/3)
X = 300 (original price)

1/4 * X = 75 (discount amount)

Answer 4

sale price is $225

therefore 225 = 75%
x = 100 %

x = 100 x 225 divided by 75 = 300

check: 300 - 25% = 300 - 75 = 225

so far so good

tax rate of 8 % on 225 = 225 x .08 = $ 18

225 + 18 = $243 (checks out)

Answer 5

Sales Price = 225

Think of it this way. You buy an item at $x and get a 25% discount, The final price you actually pay is $225.

The equation is set up like this: ($x-.25x) = 225
So, .75x = 225 x = $300 This means the original price is $300.

The discount amount is $300 - 225 = $75