Question

Your manager asks you to calculate the sales price of a product that is marked down 20 percent. You enter the original price in cell A2. What formula should you use?

1) A2/20
2) A2*20
3) A2-.20
4) A2*.80

Answer 1

Multiplying the original price (A2) by 0.80 accurately represents a 20 percent markdown, providing the correct sales price. The formula A2 * 0.80 accounts for the reduced price after the discount. Thus, the correct answer is option 4) A2*.80

Step-by-step explanation:

In cell A2, enter the original price of the product, and then use the formula A2*.80 to calculate the sales price after a 20 percent markdown.

This formula represents a reduction of 20 percent from the original price. Multiplying the original price by 0.80 (1 - 0.20) effectively decreases it by 20 percent, providing the accurate sales price.