1988 AMC 8 Problem 22

Attempt Problem 22 of the 1988 AMC 8 below, then check your answer against the professionally curated solution from LIVE by Po-Shen Loh. You can also try the full timed exam, view all 1988 AMC 8 solutions, or check the answer key.

All problems are used with official legal permission of the Mathematical Association of America (MAA).

22.

Tom’s Hat Shoppe increased all original prices by 25%.25\%. Now the shoppe is having a sale where all prices are 20%20\% off these increased prices. Which statement best describes the sale price of an item?
The sale price is 5%5\% higher than the original price.
The sale price is higher than the original price, but by less than 5%.5\%.
The sale price is higher than the original price, but by more than 5%.5\%.
The sale price is lower than the original price.
The sale price is the same as the original price.
Answer: E
Concepts:percentage
Small hint:
Increasing by 25%25\% multiplies the price by 1.25;1.25; taking 20%20\% off multiplies by 0.800.80
Big hint:
Multiply the two factors together and compare the result to 11
Solution:
Increasing by 25%25\% multiplies the price by 1.25,1.25, and then taking 20%20\% off multiplies by 0.80.0.80.
The overall factor is 1.25×0.80=1.00,1.25 \times 0.80 = 1.00, so the sale price equals the original price.
Thus, the correct answer is E .
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