price of a model by 15%. If the new price is $128,000, what was its original price? How much was saved by purchasing the model?

Question

A builder of tract homes reduced the price of a model by 15%. If the new price is $128,000, what was its original price? How much was saved by purchasing the model?

Answer 1

Starting with original price and subtracting 15%, we get the new price $128,000.

 

So translate this sentence into math.

 

We don't know the original price so we call it P.

 

P - 15%P = $128,000

 

P - .15P = 128,000 (because 15% = .15)

 

.85P = 128,000

 

P = 128,000 / .85

 

P = $150,588.24

 

So the original price was approximately $150, 588

 

The amount saved of course is $150,588 - $128,000

Answer 2

If you reduce a price by 15%, the new price is 85% of the original. (100-15=85).

 

If we say that x=original price and y=discounted price, we can create the following equation

 

y=0.85x (0.85 is 85% as a decimal)

 

We know that the new/discounted price is 128,000, so we can substitute this for y.

 

128,000=0.85x

 

To find the original price, just solve for x.

     x=$150,588 (rounded)
To find how much was saved, subtract the discount price from the original price and voila!

     150,588 - 128,000 = $22,588

 

Hope this helps.