An electronics store had a 20% off sale. If a stereo originally cost $125, how much did the stereo cost during the sale?
The Correct Answer and Explanation is:
Answer:
The stereo cost $100 during the 20% off sale.
Explanation
To find the sale price of the stereo during a 20% off sale, we begin by understanding what a discount means. A 20% discount means the customer pays 20% less than the original price.
The original price of the stereo is $125. We calculate 20% of $125 to determine how much money is taken off the original price during the sale.
To find 20% of $125, we convert the percentage to a decimal and multiply:20%=20100=0.2020\% = \frac{20}{100} = 0.2020%=10020=0.20Discount=0.20×125=25\text{Discount} = 0.20 \times 125 = 25Discount=0.20×125=25
So, the store gives a $25 discount.
Now, we subtract the discount from the original price to find the final sale price:Sale Price=125−25=100\text{Sale Price} = 125 – 25 = 100Sale Price=125−25=100
Thus, the stereo costs $100 during the sale.
Why Understanding Discounts Is Important
Understanding how discounts work helps consumers make smart financial decisions. In real-life scenarios, stores often use percentages to show savings during sales. Knowing how to calculate these savings allows shoppers to judge whether a deal is truly worthwhile.
Also, understanding percentages is an essential part of financial literacy. Discounts, interest rates, tax, and tips all involve percentage calculations. For example, if a product is taxed at 8%, a shopper should be able to calculate the total cost after tax.
In this case, knowing how to subtract 20% from the original price helps a buyer recognize that the stereo costs significantly less during the sale. It also enables them to budget better, perhaps buying other items with the money saved.
So, the stereo’s final cost of $100 is not only the result of a simple math calculation but also an example of real-world math application in everyday shopping.
