PSAT Math Multiple-Choice Question 247: Answer and Explanation

Question: 247

When a certain kitchen appliance store decides to sell a floor model, it marks the retail price of the model down 25 percent and puts a "Floor Model Sale" sign on it. Every 30 days after that, the price is marked down an additional 10 percent until it is sold. The store decides to sell a floor model refrigerator on January 15th. If the retail price of the refrigerator was $1,500 and it is sold on April 2nd of the same year, what is the final selling price, not including tax?

• A. $820.13
• B. $825.00
• C. $911.25
• D. $1,012.50

Correct Answer: C

Explanation:

C

Difficulty: Hard

Category: Problem Solving and Data Analysis/Rates, Ratios, Proportions, and Percentages

Getting to the Answer: Draw a chart or diagram detailing the various price reductions for each 30 days.

Date	Percent of Most Recent Price	Resulting Price
Jan 15	100 - 25% = 75%	$1,500 × 0.75 = $1,125
Feb 15	100 - 10% = 90%	$1,125 × 0.9 = $1,012.50
Mar 15	100 - 10% = 90%	$1,012.50 × 0.9 = $911.25

You can stop here because the refrigerator was sold on April 2, which is not 30 days after March 15. The final selling price was $911.25, (C).