Question

A local college bookstore paid a net price of $12,500 for textbooks for the coming semester. The publisher offered a trade discount of 20%. The publisher's original list price was:

Answer 1

a discount of 20% means, assuming P is the original list price:
12500 = P - 20% of P
= P - 0.2P
= (1 - 0.2)P
= 0.8P
P = 12500/0.8 = 15625
$15625 is the original list price