Question

The latest smartphone at The Digital Source sells for $1,200. When a manager at Digital Sourcehears that Best Buy charges more, she raises the price by 50%. But when the phone does not sellwell, she then reduces the price by 25%. What is the final price of the smartphone after thisreduction? (1 point)

Answer 1

The original price is $1200.

The first step is to increase it by 50%. This can be done as:

`\begin{gathered} 1200\cdot(1+0.5) \\ 1200\cdot1.5 \\ 1800 \end{gathered}`

NOTE: to do math with percentages it is better to convert them to decimals. For example, 50% is equal to 0.5 in decimal form. You can convert from percentage to decimal by dividing the percentage by 100.

Then, we reduce this price by 25% (or -0.25):

`\begin{gathered} 1800\cdot(1-0.25) \\ 1800\cdot0.75 \\ 1350 \end{gathered}`

Answer: the final price is $1350.