GIVEN:
We are told that the original price of a sofa is $500 and rthen it has been reduced by 20%, leaving the new price at $400.
The company cant sell the sofa after 3 weeks so they reduce the price to $320.
Required;
To find the percentage decrease.
Step-by-step solution;
At the point of reducing the price further, the original price has now been put at $400 and the new price has been set at $320. We take note that in terms of percentage, the original price is 100% while the new price will be represented by x (that is, yet unknown).
With this information we can set up an equation based on the ratio of the two prices as compared to the two percentages.
This means;
[tex]\begin{gathered} Original\text{ }price=400(100\%) \\ \\ New\text{ }price=320(x\%) \end{gathered}[/tex]Therefore;
[tex]\frac{400}{320}=\frac{100}{x}[/tex]Now we cross multiply;
[tex]\begin{gathered} x=\frac{100\times320}{400} \\ \\ x=\frac{320}{4} \\ \\ x=80 \end{gathered}[/tex]The new price is now given as 80% which simply means 20% was deducted from the original price. In other words, there was a 20% price reduction.
ANSWER:
There was a 20% decrease.
