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Alma bought a laptop computer at a store that gave a 20 percent discount off its original price. The total amount she paid to the cashier was p dollars, including an 8 percent sales tax on the discounted price. Which of the following represents the original price of the computer in terms of p?

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0.88 p

\frac{p}{0.88}

(0.8) (1.08) p

\frac{p}{(0.8) (1.08)}

answer is D.

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Detailed Solution

Given,
Discount = 20%
Suppose that
Laptop’s original cost be

= L

After 20 % discount its price =

(100 - 20) % \times L = 0.8 L

Including price will be 8 % sales tax,

= (100 + 8) % \times 0.8 L

= 1.08 \times 0.8 L

So,

p = 1.08 \times 0.8 L

\Rightarrow L = \frac{p}{(0.8) (1.08)}

Hence, the original price of the computer in terms of

= \frac{p}{(0.8) (1.08)}

Correct option is 4.

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