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The price of an item has been reduced by 40%. The original price was $90. What is the price of the item now?

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The reduction in price is calculated as 40% of $90, which is (40/100) * $90 = $<<40/100*90=36>>36.
Therefore, the price of the item now is $90 - $36 = $<<90-36=54>>54. Answer: \boxed{54}.

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