A $75 item has a 20% discount. What is the final price?

A $75 item has a 20% discount. What is the final price?

• A. $60
• B. $60.50
• C. $57
• D. $75

Answer: (A)

When you apply a discount, you reduce the original price by that percentage of the price. A 20% discount on $75 means subtract 20% of 75 from 75. 20% as a decimal is 0.20, so the discount is 75 × 0.20 = 15. Subtracting gives 75 − 15 = 60. Another way to see it is to pay 80% of the price (since 100% − 20% = 80%), so 75 × 0.80 = 60. Therefore, the final price is $60.

When you apply a discount, you reduce the original price by that percentage of the price. A 20% discount on $75 means subtract 20% of 75 from 75. 20% as a decimal is 0.20, so the discount is 75 × 0.20 = 15. Subtracting gives 75 − 15 = 60. Another way to see it is to pay 80% of the price (since 100% − 20% = 80%), so 75 × 0.80 = 60. Therefore, the final price is $60.