A store marked up an item by 20% and then offered a 15% discount on the marked-up price. If the final selling price was $204, what was the original cost of the item?

A $180

B $200

C $220

D $240

✓ Correct Answer: Option B

Let original cost be C. Marked-up price = 1.20C. Discounted price = 1.20C * 0.85 = 1.02C. Given 1.02C = 204, so C = 204 / 1.02 = 200.

💡 Why is B) the correct answer?

The correct answer to the question "A store marked up an item by 20% and then offered a 15% discount on the marked-up price. If the final selling price was $204, what was the original cost of the item?" is Option B: $200.

The other options — A) $180, C) $220, D) $240 — are incorrect for this GRE Exam Prep question. As explained above: Let original cost be C. Marked-up price = 1.20C. Discounted price = 1.20C * 0.85 = 1.02C. Given 1.02C = 204, so C = 204 / 1.02 = 200.

📚 About This GRE Exam Prep Practice Question

This 2-level GRE Exam Prep question from the Quantitative Reasoning topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GRE Exam Prep practice test or use flashcards for spaced repetition review.

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A store marked up an item by 20% and then offered a 15% discount on the marked-up price. If the final selling price was $204, what was the original cost of the item?

✓ Correct Answer: Option B

📚 About This GRE Exam Prep Practice Question

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