Question

An item that regularly sells for $350 is marked down to $262.50. What is the discount rate?

a.
25%

b.
28%

c.
33%

Answer 1

To find the discount rate, you can use the formula:

\[
\text{Discount Rate} = \frac{\text{Original Price} - \text{Sale Price}}{\text{Original Price}} \times 100\%
\]

1. Calculate the discount amount:
\[
\text{Discount Amount} = \text{Original Price} - \text{Sale Price} = 350 - 262.50 = 87.50
\]

2. Now, plug the values into the discount rate formula:
\[
\text{Discount Rate} = \frac{87.50}{350} \times 100\%
\]

3. Calculate it:
\[
\text{Discount Rate} = \frac{87.50}{350} \approx 0.25
\]

4. Convert to percentage:
\[
\text{Discount Rate} \approx 0.25 \times 100\% = 25\%
\]

Therefore, the discount rate is **25% (option a)**.