An item costing #$125# was marked up by #30%# of the selling price. During a sale, the item was reduced to #$120#. What was the rate of markdown during the sale?

2 Answers
Feb 20, 2018

Approximately #26%#

Explanation:

.

Let's let the marked up price #=x#.

#x=$125(1.3)=$162.5#

The rate of markdown would be:

#($162.5-$120)/($162.5)=0.261538#

which is approximately #26%#.

Feb 20, 2018

If a #$125# item was marked up by #30%# from its selling price, then #30%# of #$125# was added to its selling price.

#$125.00 + 0.30 cdot $125.00 = $162.50#

If it was put on sale for #$120.00#, then it was marked down by:

#($162.50 - $120.00)/($162.50) xx 100% = 26.2%#

So the amount of decrease in price divided by the original price is going to give the relative drop in price.