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

A $190

B $200

C $210

D $220

✓ Correct Answer: Option B

Let original price be P. Marked-up price = P * (1 + 0.20) = 1.2P. Discounted price = 1.2P * (1 - 0.15) = 1.2P * 0.85 = 1.02P. Given 1.02P = $204. So, P = $204 / 1.02 = $200.

💡 Why is B) the correct answer?

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

The other options — A) $190, C) $210, D) $220 — are incorrect for this GMAT Exam Prep question. As explained above: Let original price be P. Marked-up price = P * (1 + 0.20) = 1.2P. Discounted price = 1.2P * (1 - 0.15) = 1.2P * 0.85 = 1.02P. Given 1.02P = $204. So, P = $204 / 1.02 = $200.

📚 About This GMAT Exam Prep Practice Question

This 3-level GMAT 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 GMAT Exam Prep practice test or use flashcards for spaced repetition review.

Practice GMAT Exam Prep Quizzes → Browse All Questions Study Flashcards

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

✓ Correct Answer: Option B

📚 About This GMAT Exam Prep Practice Question

Related GMAT Exam Prep Questions