A product costs $120 and is discounted by 25%. What is the sale price?

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Multiple Choice

A product costs $120 and is discounted by 25%. What is the sale price?

Explanation:
Percent discounts reduce the price by a portion of the original price. A 25% discount means you pay 75% of the price. So the sale price is 0.75 × 120 = $90. Equivalently, 25% of 120 is $30, and 120 − $30 = $90. The other amounts would result from different discount amounts, not 25%.

Percent discounts reduce the price by a portion of the original price. A 25% discount means you pay 75% of the price. So the sale price is 0.75 × 120 = $90. Equivalently, 25% of 120 is $30, and 120 − $30 = $90. The other amounts would result from different discount amounts, not 25%.

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