My question is: A luxury perfume costs $1200. The store owner decided to increase its price by 10% so that he could earn more profit. Few weeks had past but the perfume was still not sold. So, the owner decided to lower the price by 15%. By how much was the final price lower than the original price? Your thoughts:
There was a $1200 x 10 / 100 = $120 increase of the original price. So, the perfume was priced for $1200 + $120 = $1320. Then, 15% of the new price is $1320 x 15 / 100 = $198. So, the final price is now $1320 - $198 = $1122. Therefore, the final price is $1200 - $1122 = $78 lower than the original price. The final answer: 78.