Recall that the x% of y is given by the following expression:

1) Let D be the regular price (in dollars) of the drill. Since Pamela bought the drill at 85% of the regular price, and she paid $32.89 for the drill, then we can set the following equation:

2) Multiplying the above equation by 100 we get:

3) Finally, dividing the above equation by 85 we get:

Answer: The regular price is $38.69