The price of an item has increased 15% since last year. However, a person can buy the item for a 25% employee discount. The employee pays $172.50. What was the price last year?

1 Answer
Dec 1, 2016

Answer:

$200

Explanation:

The employee pays $172.50 and he got 25% employee discount.
If the cost is $100, he pays $(100 - 25) = $75.
So, employee pays = #100/75 * 172.50# = $230.00.

Again, price was increased by 15% last year. So whose cost is $100
is sold by $(100+15) = $115.

When sell price is $115, then cost price is $100. Then,
when sell price is $230, then cost price is #100/115 * 230# = $200.