Question

Tyler bought a shirt from the 25% off rack. It normally costs $16. Here is the money he paid.

A ten dollar bill and two one dollar bills


Why did he pay $12? the options are (Sales Tax, Markup, Interest, Tip, Markdown, and Commission)

Answer 1

25%*16=4
so, subtract 4 from 16 to get the marked down price of $12.

he paid $12 because the original price was marked down.

Answer 2

25% = 1/4 of 100
$16/4 = $4
$16-$4= $12
The item (the shirt in this case) was marked down