Question

A furniture store has a bed that costs $200 in stock. It decreased the price by 30%. It then marked up the price by 20%. What is the new price of the bed?

a. $192
b. $216
c. $224
d. $208

Answer 1

The new price of the bed after a 30% decrease and a 20% markup is $208.

Step-by-step explanation:

To find the new price of the bed after a 30% decrease and a 20% markup, we can use the formula:

New Price = (1 - Decrease %) * (1 + Markup %) * Original Price

Substituting the given values, the new price is:

New Price = (1 - 0.30) * (1 + 0.20) * $200

New Price = 0.7 * 1.2 * $200 = $168

Therefore, option a. $192 is not the correct new price. The correct new price is option d. $208.