Shop X sells a handbag for $520. This price is 30% more than the price which Shop Y sells it for.
(a) What is the price of the handbag in Shop Y?
(b) During a sale, both shops offer an equal percentage discount on the handbag. Miss Lee buys the handbag in Shop Y. She pays $90 less than the discounted price in Shop X. What is the percentage discount?
Solution
Shop X ----- 100% + 30% ----- $520
Shop Y ----- 100%
(a)
130% ----- $520
100% ----- $520 divided by 1.3 = $400
Answer: The price of the handbag in Shop Y is $400.
(b)
Before discount, the price difference between Shop X and Shop Y is $120.
After discount, the price difference is $90.
The $30 decrease in difference is due to the same percentage discount at both shops.
Discount ----- $(30/120) x 100% = 25%
Answer: The percentage discount is 25%.
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