Question 1 of 3
An item's price increases by 20% and becomes $84. What was its original price?
View worked answer for question 1
Correct answer
Choice B: $70
Explanation
Let the original price be P. A 20% increase gives 1.20P = 84, so P = 84/1.20 = 70. Checking: 20% of $70 is $14, and $70 + $14 = $84.
Why each choice is right or wrong
- Choice A
Subtracting $20 treats a percentage as a dollar amount.
- Choice B
Correct: dividing the final price by 1.20 gives $70.
- Choice C
This applies another 20% increase to the final price.
- Choice D
This doubles the final price instead of reversing the stated multiplier.