A store discounts a $120 item by 20%. What is the final price?

A store discounts a $120 item by 20%. What is the final price?

• A. $24
• B. $108
• C. $96
• D. $120

Answer: (C)

When a price is reduced by a percent, you pay the remaining portion of the price. A 20% discount leaves 80% to pay. So the final price is 120 × 0.80 = 96. Another way to see it: the discount amount is 20% of 120, which is 0.20 × 120 = 24, and 120 − 24 = 96. The final price is 96 because you’re paying 80% of the original price. The other numbers would represent either the discount amount ($24) or the result of a smaller discount, like 10% off ($108), or no discount at all ($120).

When a price is reduced by a percent, you pay the remaining portion of the price. A 20% discount leaves 80% to pay. So the final price is 120 × 0.80 = 96. Another way to see it: the discount amount is 20% of 120, which is 0.20 × 120 = 24, and 120 − 24 = 96. The final price is 96 because you’re paying 80% of the original price. The other numbers would represent either the discount amount ($24) or the result of a smaller discount, like 10% off ($108), or no discount at all ($120).