Problema Solution
after the embargo was lifted, the price of gasoline fell by 10%. Days later, when the cease-fire was announced, the price fell again (from the new lower price) by another 20%. If the price of gasoline is now $1.08, what was it originally?
Answer provided by our tutors
Let 'x' represent the original price.
The price after the 10% drop will be: x - 0.10x = 0.90x
After the second drop of 20% the price is: 0.90x - 0.20*0.90x = 0.80*0.90x
0.80*0.90x = 1.08
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click here to see the equation solved for x
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x = $1.50
The price originally was $1.50.