ASVAB · Interest, Discount, and Markup

A jacket originally priced at $80 is discounted 25%. What is the sale price?

Correct answer

$60

  1. A $55
  2. B $60
  3. C $65
  4. D $20

Why this is the answer

A 25% discount means you subtract 25% of the price. First find the discount: 25% of $80 = 0.25 × 80 = $20. Then subtract from the original: $80 − $20 = $60. A faster method is to recognize that after a 25% discount you pay 75% of the original: 0.75 × $80 = $60. Discount problems test whether you can convert a percent to a decimal and decide whether to subtract (discount) or add (markup/tax). The sale price here is $60; the $20 answer is the discount amount, not the final price, so read the question carefully.
Source: ASVAB AR, Discount Pricing