After an increase of , the price of a bag is \500$. What was the price before the increase?

Answer and explanation

Correct answer: B. \$400

  1. Step 1: The new price is times the old price.
  2. Step 2: Old price .
Answer
\$400.
Why not the others: \$375: it takes 25% off the new price instead of dividing by 1.25. \$475: it subtracts the percentage number as if it were dollars. \$540: it adds an unrelated amount.

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