A price is increased by 20% to 60. What was the original price?

A price is increased by 20% to 60. What was the original price?

• A. 60
• B. 50
• C. 40
• D. 30

Answer: (B)

When a price goes up by a percentage, the new price is the original price multiplied by 1 plus the percentage in decimal form. Here, a 20% increase means the new price equals the original price times 1.20. Since the new price is 60, the original price is 60 divided by 1.20. 60 ÷ 1.20 = 50. Equivalently, 1.20 is 6/5, so the original price is 60 × (5/6) = 50. Checking quickly: if the original were 60, the increase would bring it to 72; if it were 40, the new price would be 48; if it were 30, the new price would be 36. Only 50 yields 60 after a 20% increase.

When a price goes up by a percentage, the new price is the original price multiplied by 1 plus the percentage in decimal form. Here, a 20% increase means the new price equals the original price times 1.20. Since the new price is 60, the original price is 60 divided by 1.20.

60 ÷ 1.20 = 50. Equivalently, 1.20 is 6/5, so the original price is 60 × (5/6) = 50.

Checking quickly: if the original were 60, the increase would bring it to 72; if it were 40, the new price would be 48; if it were 30, the new price would be 36. Only 50 yields 60 after a 20% increase.