Question

Mark and David agree to purchase a beach house in South Carolina at a cost of $378,000 which just had a price reduction of 10%. What was the original price of the house? How much did they save from the 10% reduction on the house?

Answer 1

a) Original price= $420000

b) Saving= $ 42000.

Explanation:

Given: Purchase price of beach house= $378000

Price reduction= 10%

Let the original price be `x`

Now, computing to find the value of original price.

Purchase price=
`Original\ price- Original\ price* discount\%`

⇒
`\$ 378000= x-x* 0.10`

⇒
`\$ 378000= x-0.10x`

⇒
`\$ 378000= 0.9x`

Cross multiplying both side

∴ x=
`(378000)/(0.9)= \$ 420000`

∴ Original price= $420000.

Saving= Original price - Purchase price

Saving=
`\$ 420000-\$ 378000= \$ 42000`

∴ Saving made by Mark and David is $42000.