A store initially sells a jacket for $120. During a sale, the price is reduced by 25%. After the sale, the store increases the discounted price by 20%. What is the final price of the jacket?
✓ Correct Answer: Option A
Initial price is $120. A 25% reduction means 120 * (1 - 0.25) = 120 * 0.75 = $90. Increasing the discounted price by 20% means 90 * (1 + 0.20) = 90 * 1.20 = $108.