Final answer:
The actual purchase price of the lawn furniture was $300, with a 20% tip accounting for the additional $60, resulting in the total amount of $360 paid by Adam.
Step-by-step explanation:
The actual purchase price of the lawn furniture can be found by recognizing that the total amount Adam paid includes both the purchase price and the 20% tip. To find the purchase price, we need to determine the tip amount first and then subtract it from the total amount paid.
Step 1: Calculate the tip amount
Since the total amount of $360 includes a 20% tip, this means the tip is part of this amount. To find the tip amount as a part of the whole, we divide $360 by 1.20 because the total amount represents 120% (100% for the furniture plus 20% for the tip).
Step 2: Subtract the tip amount from total to find the original price
When we calculate $360 / 1.20, we get $300, which represents the original price of the lawn furniture. The tip amount is $360 - $300 = $60. Adam paid $300 for the lawn furniture and an additional $60 as a tip.