Question

During a sale, a store offered a 40% discount on a particular camera that was originally priced at $450. After the sale, the discounted price of the camera was increased by 40%. What was the price of the camera after this increase?

Answer 1

378

Explanation:

Remark

This is a question that all investors in stocks should be aware off. It does not come back to 450 dollars.

Step One

Find out the price of the discounted camera.

40% reduction price = 450 - (40/100)*450

40% reduction price = 450 - 180 = 270

Step Two

Now add 40% onto the new price.

New price = Reduced price + 40% of reduced price

New Price = 270 + 40%* 270

New Price = 270 + 108

New Price = 378

Remark

The reason stock investors should be aware of this is that if you take a 40% loss on a stock it takes more than a 40% gain to make the price of your stock loss back.