Problem-Solving and Data AnalysisMediumFinding the original price after a percent increase

Problem-Solving and Data Analysis practice question

The price of a jacket was increased by 20%, and the new price is $72. What was the original price, in dollars?

Answer: 60

A 20% increase makes the new price 120% of the original, so 1.2 × (original) = 72. Divide: 72 / 1.2 = 60. Check: 20% of 60 is 12, and 60 + 12 = 72.

If you answered 52: 52 is 72 − 20, subtracting 20 dollars rather than undoing a 20 percent increase. Percent changes multiply, so undo them by dividing.
If you answered 57.6: 57.6 is 72 × 0.8, taking 20% OFF the new price. But the 20% was added to the original, not to $72 — the original is 72 divided by 1.2.
If you answered 86.4: 86.4 is 72 × 1.2, increasing the new price by another 20%. The new price is already the increased one; to go back, divide by 1.2.