A store marked up the price of an item by 20%. Later, during a sale, it offered a 10% discount on the marked-up price. If the final selling price was $108, what was the original price of the item?

Question

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B) $100. Let the original price be P. After a 20% markup, the price is P * 1.20. A 10% discount on this price means 0.90 * (P * 1.20) = 1.08P. Given 1.08P = $108, P = $108 / 1.08 = $100.

A store marked up the price of an item by 20%. Later, during a sale, it offered a 10% discount on the marked-up price. If the final selling price was $108, what was the original price of the item?

✓ Correct Answer: Option B

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