PSAT Math Multiple-Choice Question 370: Answer and Explanation

Question: 370

A used car dealership initially prices a car at $12,000. When the car fails to sell, the dealership reduces the price to $10,500. During a holiday sale, the dealership drops the price of the car an additional 5 percent below the reduced price. To the nearest tenth of a percent, what is the total percent discount from the car's initial price to the holiday sale price?

• A. 15.5%
• B. 16.9%
• C. 17.5%
• D. 20%

Correct Answer: B

Explanation:

B

Difficulty: Medium

Getting to the Answer: To find the total percent discount, you'll first need to determine the total discount in actual price. The first change is given: $12,000 - $10,500 = $1,500. The second change is a 5% discount, which can be calculated using the price after the first reduction: (.05)$10,500 = $525. Therefore, the total drop in price is $1,500 + $525 = $2,025. Now, apply the percent change formula:

Since the question asks for the percent change to the nearest tenth of a percent, round the answer to 16.9%. That's choice (B).