Question

A local supermarket offered a discount of 15% on its items after the government raised all the prices by 25%. Overall by what percentage were the original prices raised in this supermarket in particular?

A ) 8.625%
B ) 7.250%
C ) 6.250%
D ) 5.625%​

Answer 1

the answer is (C) 6.250%

Step-by-step explanation:

To find the overall percentage increase in prices at the supermarket, you can use the following steps:

First, calculate the effective price increase after the government raised prices by 25%.

Let's say the original price of an item was $100.

After the government raised prices by 25%, the new price became:

New Price = Original Price + (25% of Original Price)

New Price = $100 + (0.25 * $100)

New Price = $100 + $25

New Price = $125

Now, calculate the final price after the supermarket applied a 15% discount to this new price.

Final Price = New Price - (15% of New Price)

Final Price = $125 - (0.15 * $125)

Final Price = $125 - $18.75

Final Price = $106.25

Calculate the overall percentage increase in prices compared to the original price.

Percentage Increase = [(Final Price - Original Price) / Original Price] * 100%

Percentage Increase = [($106.25 - $100) / $100] * 100%

Percentage Increase = ($6.25 / $100) * 100%

Percentage Increase = 6.25%

So, the overall percentage increase in prices at this supermarket was 6.25%.

Therefore, the answer is (C) 6.250%.