Question

A retailer marked up the cost of a coat by 20% when she first displayed it in her store. After several weeks, she reduced the selling price of the coat by 25%. If the retailer originally paid $50 for the coat, what will be her loss on the coat at the final price?

Answer 1

once again be careful with the percents! A good rule of thumb is never combine them before calculating.

To set this up:
50-(1.2*50)*.75

Answer 2

Is there a trick to this? Like, an equation that I can follow to tackle this problem effectively every time?

Answer 3

I'm having a hard time understanding how you put that equation together.

Answer 4

so what you need to do is think of what is happening to each price and model it EXACTLY as its happening. In the correct order is important.

Answer 5

what I did was,
First the price is $50, so the model starts off: 50
Then 20% increase, so: 50*1.2
Then 25% decrease (ON EVERYTHING), so: 50*1.2*.75

Answer 6

finally, you want the difference so do initial (50) minus final (50*1.2*.75): 50-50*1.2*.75

Answer 7

the reason I put parenthesis in the first equation is to help distinguish the order.

Answer 8

do you understand how I got it now?

Answer 9

ohhhhh okay I'm getting it now. thank you

Answer 10

why did you subtract 50 from 50?

Answer 11

the key is not to fall for the trap where you subtract percents before setting it up. DO NOT DO 20% increase and 25% decrease, therefore 5% decrease.
Just think of it systematically and do each step separately.

Answer 12

I didnt. The final equation is: 50-(50*1.2*.75)

Answer 13

oh i see it

Answer 14

Order of operations haha, you don't usually need to put those parenthesis in there, but if it helps then definitely do it.