Question

The price of a sweater was reduced from $20 to $12. By what percentage was the price of the sweater reduced?

Answer 1

To find the percentage by which the price of the sweater was reduced, we can use the formula for percentage decrease:

\[
\text{Percentage Decrease} = \left( \frac{\text{Old Price} - \text{New Price}}{\text{Old Price}} \right) \times 100
\]

In this case:
- Old Price = $20
- New Price = $12

Now, we calculate the decrease in price:

\[
\text{Decrease} = \text{Old Price} - \text{New Price} = 20 - 12 = 8
\]

Next, we can substitute this value back into the percentage decrease formula:

\[
\text{Percentage Decrease} = \left( \frac{8}{20} \right) \times 100
\]

Calculating this:

\[
\frac{8}{20} = 0.4
\]
\[
0.4 \times 100 = 40
\]

Thus, the price of the sweater was reduced by **40%**.