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GRE
GRE Quantitative Reasoning Section

Final Price After Discount and Markup Comparison

Medium Arithmetic Fractions, Decimals, And Percents

A store is having a sale where all items are marked down by 20%.

Let the original price of an item be represented as $P$. After applying the discount, the new sale price can be calculated as follows:

Sale\, Price = P - (0.20 imes P) = 0.80P

After the sale, the store decides to increase the sale price of the item by 25% to promote it further. The final price of the item can then be expressed as:

Final\, Price = Sale\, Price + (0.25 imes Sale\, Price) = 1.25 imes Sale\, Price = 1.25 imes 0.80P

Now, compare the final price of the item to the original price $P$.

Hint

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