Question

3.

Best Buy purchased a TV wholesale (before taxes) for $1000. They marked up the price by
25%. Then, they discounted the TV by 25%. Is the price of the TV back down to $1000?
Explain.

Answer 1

No, the price of the TV is not back down to $1000.

Explanation:

The price of TV (before taxes) was $1000. Then they marked up the price by 25%

So,

1000 × 25 ÷ 100

2500/100 = 250

$1000 + $250 = $1250

Here, The 25% of $1000 is $250 and the price is now $1250

Then, they discounted the TV by 25%.

So,

1250 × 25 ÷ 100

31250/100 = 312.5

$1250 - $312.5 = $937.5

Here, The 25% of $1250 is $312.5 and the price is now $937.5

Thus, No, the price of the TV does not back down to $1000.