# 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

$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 =

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