An item costing $125$125 was marked up by 30%30% of the selling price. During a sale, the item was reduced to $120$120. What was the rate of markdown during the sale?

2 Answers
Feb 20, 2018

Approximately 26%26%

Explanation:

.

Let's let the marked up price =x=x.

x=$125(1.3)=$162.5x=$125(1.3)=$162.5

The rate of markdown would be:

($162.5-$120)/($162.5)=0.261538$162.5$120$162.5=0.261538

which is approximately 26%26%.

Feb 20, 2018

If a $125$125 item was marked up by 30%30% from its selling price, then 30%30% of $125$125 was added to its selling price.

$125.00 + 0.30 cdot $125.00 = $162.50$125.00+0.30$125.00=$162.50

If it was put on sale for $120.00$120.00, then it was marked down by:

($162.50 - $120.00)/($162.50) xx 100% = 26.2%$162.50$120.00$162.50×100%=26.2%

So the amount of decrease in price divided by the original price is going to give the relative drop in price.