A shop raises a price by 40 percent, then gives a 25 percent discount on the new price, and finally adds 10 percent sales tax on the discounted price. Compared with the original price, the final price is:

Answer and explanation

Correct answer: D. 15.5 percent higher than the original price

  1. Step 1: Chain the multipliers: after the raise and discount.
  2. Step 2: Add the tax: .
  3. Step 3: A factor of 1.155 means 15.5 percent above the original.
Answer
15.5 percent higher than the original price.
Why not the others: 15 percent drops the 0.5 from the last multiplication; 10 percent adds the percentages 40, -25 and 10 incorrectly as 25; 5.5 percent compares only the tax step with the discount.

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