MathDB
1988 AJHSME #22

Source:

June 21, 2011

Problem Statement

Tom's Hat Shoppe increased all original prices by 25%25\%. Now the shoppe is having a sale where all prices are 20%20\% off these increased prices. Which statement best describes the sale price of an item?
(A) The sale price is 5% higher than the original price. \text{(A)}\ \text{The sale price is }5\%\text{ higher than the original price.} (B) The sale price is higher than the original price, but by less than 5%. \text{(B)}\ \text{The sale price is higher than the original price, but by less than }5\% . (C) The sale price is higher than the original price, but by more than 5%. \text{(C)}\ \text{The sale price is higher than the original price, but by more than }5\% . (D) The sale price is lower than the original price. \text{(D)}\ \text{The sale price is lower than the original price.} (E) The sale price is the same as the original price. \text{(E)}\ \text{The sale price is the same as the original price.}
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