Practice & ContractsQuestion 118 of 120
An owner sells a property for $360,000, which represents a 20% loss from what she originally paid. What did she originally pay?
a.$432,000
b.$450,000
c.$400,000
d.$300,000
Explanation
If $360,000 is 80 percent of the original cost after a 20 percent loss, then the original price equals $360,000 divided by 0.80, which is $450,000. Loss percentages are figured on the original cost. Set the sale price equal to the cost times one minus the loss rate and solve.
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