1. The price of a laptop is reduced by 25% in a sale. If the sale price is $600, what was the original price?
a) $720
b) $750
c) $800
d) $850
Answer: c)
Explanation: Let the original price be x.
Given that the sale price is 25% less than the original price,
x - 25% of x = 600
x = 600
x = 800
So, the original price of the laptop was $800.
2. A car dealership sells a car for $24,000, which is 20% more than the cost price. What was the cost price of the car?
a) $19,200
b) $20,000
c) $22,000
d) $23,000
Answer: b)
Explanation: Let the cost price be x.
Given that the selling price is 20% more than the cost price
x + 20% of x = 24,000
1.20x = 24,000
On solving, x = 20,000
So, the cost price of the car was $20,000.
3. The population of a town increased by 12% in the first year and by 8% in the second year. If the initial population was 50,000, what is the population at the end of the two years?
a) 58,000
b) 59,600
c) 60,480
d) 62,000
Answer: c)
Explanation: Initial population = 50,000
Population after the first year (12% increase) = 50,000 × 112%
= 56,000
Population after the second year (8% increase) = 56,000 × 108%
= 60,480
So, the population at the end of two years is 60,480.
4. A student's score on a test is 84, which is 20% higher than his previous test score. What was his previous test score?
a) 64
b) 70
c) 72
d) 75
Answer: b)
Explanation: Let the previous test score be x.
Given that the new score is 20% higher than the previous score:
x + 20% of x = 84
x = 84
x = 70
So, the previous test score was 70.
5. A company’s revenue increased from $1,000,000 to $1,200,000 over a year. What is the percentage increase in revenue?
a) 15%
b) 18%
c) 20%
d) 25%
Answer: c)
Explanation: Initial revenue = $1,000,000
Final revenue = $1,200,000
Percentage increase = x 100 = 20%
So, the percentage increase in revenue is 20%.
6. A bookstore offers a discount of 15% on all books. If a customer buys books worth $300, how much does the customer need to pay after the discount?
a) $255
b) $270
c) $285
d) $290
Answer: a)
Explanation: Total cost before discount = $300
Discount = 15% of 300 = $45
Amount to be paid after discount = $300 − $45 = $255
So, the customer needs to pay $255 after the discount.
7. A salesperson earns a 7% commission on the sales they make. If they received $210 in commission, how much were their total sales?
a) $2,500
b) $3,000
c) $3,500
d) $4,000
Answer: b)
Explanation: Let the total sales be s.
The commission is 7% of the total sales:
7% of s = 210
0.07s = 210
Solving for s:
s =
s = 3,000
So, the total sales amount was $3,000.
8. A savings account offers an annual interest rate of 5%. If you deposit $1,200 into the account, how much interest will you earn in one year?
a) $50
b) $60
c) $75
d) $100
Answer: b)
Explanation: Simple interest is calculated as:
Interest =
Here, the principal is $1,200, the rate is 5%, time is 1 year
Interest = = $60
So, the interest earned in one year will be $60.
9. A store offers a 10% discount on all items. If a customer buys 3 items, each originally priced at $50, what is the total cost after the discount?
a) $145
b) $140
c) $150
d) $135
Answer: d)
Explanation: Original total price for 3 items = 3 × 50 = $150
Total discount on 3 items = 10% of $150 = $15
Total cost after discount = $150 - $15 = $135
10. A meal costs $80, and there is a 12% tax on the meal. What is the total amount to be paid after tax?
a) $89.60
b) $90.40
c) $92.00
d) $94.40
Answer: a)
Explanation: Original amount = $80
Tax amount = 12% of 80 = 0.12 × 80 = $9.60
Total amount to be paid after tax = 80 + 9.60 = $89.60
So, the total amount to be paid after tax is $89.60.
