Question 540885
Let's start off by turning what you know into equations. The original price of the bag is $185. Let's call that price "P"
{{{P=185}}}
Sales price #1 says it's marked down by 25%. That means you start with your 100%, and subtract 25% = 75% of original. Let's call this "Sale A"
{{{A=.75P=.75(185)=138.75}}}
Then no one wants to buy this apparently very ugly bag, so they reduce the price again, by 17.5%. So 100%-17.5%=82.5%. But which price did they reduce from: original? or sale A? When you read the problem carefully, it is 17.5% off the SALE price (what we called "Sale A"). This becomes the second sale price, so let's call it "Sale B"
{{{B=.825A=.825(138.75)=114.47}}}
Still, no one wants this tie-dye Richard Simmons bag, so they reduce the price again! To 60% off. But which price are they adjusting here? Orignal, A, or B? Reading the question, this is now 60% off the Original price (what we called "P"). 60% OFF is 100%-60%=40%. Let's call this final sale, "Sale C"
{{{C=.40(P)=.40*(185)=74}}}