Today, everything at a store is on sale. The store offers a 20% discount. The discount price of a hat is 18$. What is the regular price?

Answer 1

A 20% discount means that you subtract 20% of the normal price. Suppose the normal price is $100. 20% of this is $20. Subtract this from $100 and you have the new price---$80.

Note that "subracting 20%" is the same as multiplying by 0.8----the general formula being:

discount price = normal price * (1-d) , where d is the decimal equivalent of the percentage discount.

From the example above:

discount price = normal price * (1-d) = 100(0.8)

to go the other way, simply rearrange the formula:

normal price = discount price / (1-d)