Question

Karl bought five folders from Pay-A-Lot at a cost of $2.50 each. Pay-A-Lot had a 20%-off sale the following day. How much could Karl have saved on the purchase by waiting a day? Express your answer as dollars and cents.

Answer 1

Karl would have saved $2 and 50 cents if he had waited a day.

Explanation:

The total cost of 5 folders Karl bought is
`\$2.5 * 5 = \$ 12.5`.

The following day, there was 20% off sale, which means if Karl had waited one day, he would have bough the folders
`100\% -20\% =80\%` of the original price.

80% of $2.5 is

`$(80\%)/(100\%) * \$2.5$`

`=0.8*\$2.5 = \$2`

the price of each folder would have been $2.

Therefore, if Karl had waited a day, he would have bought 5 folders

for 2 * 5 = $10 instead of $12.5, thus saving $12.5 - $10 = $2.5.