Question

A bike lost 20% of its value after the first year, its value after the first year is $1039. Calculate the original price of the bike?

Answer 1

The original price of the bike is $1298.75.

Step-by-step explanation:

To find the original price of the bike, we need to calculate the value before the 20% decrease. Let's say the original price is x. After a 20% decrease, the value becomes 0.8x. We are given that the value after the first year is $1039. So, we set up the equation 0.8x = $1039. To solve for x, we divide both sides of the equation by 0.8.

Therefore, the original price of the bike is $1298.75.