PSAT Math Multiple-Choice Question 377: Answer and Explanation

Question: 377

When a consignment store gets a used piece of furniture to sell, it researches the original price and then reduces that price by 40 percent to determine the price of the used piece. Every 30 days after that, the price of the used piece is marked down an additional 20 percent until it is sold. The store gets a piece of used furniture on July 15. If the original price of the furniture was $1,050 and it is sold on September 5, what is the final selling price?

• A. $258.05
• B. $322.56
• C. $504.00
• D. $630.00

Correct Answer: C

Explanation:

C

Difficulty: Hard

Category: Percent Change

Getting to the Answer: Draw a chart or diagram with the various price reductions for each 30 days. Determine the percent change and new price for each date.

Date	Percent of Most Recent Price	Resulting Price
Jul 15	100% - 40% = 60%	$1,050 × 0.6 = $630
Aug 15	100%- 20% = 80%	$630 × 0.8 = $504

You can stop here because the item was sold on September 5, which is not 30 days after August 15. The final selling price is $504, (C).