SOLUTION: If prices go down by 20% by what % does your purchasing power increase? (Purchasing power means the amount of goods you can purchase on a fixed amount of money.)

SOLUTION: If prices go down by 20% by what % does your purchasing power increase? (Purchasing power means the amount of goods you can purchase on a fixed amount of money.)

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Question 36497: If prices go down by 20% by what % does your purchasing power increase? (Purchasing power means the amount of goods you can purchase on a fixed amount of money.)
Answer by checkley71(8403) (Show Source): You can put this solution on YOUR website!
A DISCOUNT OF 20% GIVES YOU THE PURCHASING POWER REPRESENTED BY .2/(1-.2) OR .25 OR 25%.
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