Answer: $1.25
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Step-by-step explanation
x = original price
If you get a 20% discount, then you pay the remaining 80%
Therefore, 0.80x represents the price after the discount.
0.80x = 1
x = 1/0.80
x = 1.25
The original price was $1.25
Note that 20% of this is 0.20*1.25 = 0.25, which is the amount saved. Therefore, 1.25 - 0.25 = 1 dollar is the final price after the discount. This helps us confirm the answer.
Another way to confirm the answer is to write:
0.80x = 0.80*1.25 = 1