Test 5 Section 4 Number 24

According to the table, Townsend Realty purchased the Glenview Street property for $140,000. This question tells us that $140,000 was actually a pretty heavily discounted price. They received both a 40% discount off the original price *and* another 20% discount for purchasing in cash. Let’s say the original price was *x* dollars.

A 40% discount off a price of *x* can be written like this: (1 – 0.4)*x.* Of course, we can simplify the expression in the parentheses: 0.6*x*.

To take another 20% off, we do a similar operation again, starting with that 0.6*x*: (1 – 0.2)(0.6*x*) = (0.8)(0.6*x*) = 0.48*x*.

So a 40% discount followed by a 20% discount off an original price of *x* dollars can be written as 0.48*x*. We know that the final price was $140,000, so we can solve for the original price:

0.48*x* = $140,000

*x* ≈ $291,667

That rounds to $291,700, which is choice B.

Putting all the math in one place for those who like it that way:

(1 – 0.4)(1 – 0.2)*x* = $144,000

(0.6)(0.8)*x* = $144,000

0.48*x* = $144,000

*x* ≈ 291,700