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1988 AMC 8 Question 22

AMC8 · 1988 AMC 8

Question 22

Tom’s Hat Shoppe increased all original prices by $25\%.$ Now the shoppe is having a sale where all prices are $20\%$ off these increased prices. Which statement best describes the sale price of an item?
  1. The sale price is $5\%$ higher than the original price.
  2. The sale price is higher than the original price, but by less
    than $5\%.$
  3. The sale price is higher than the original price, but by more
    than $5\%.$
  4. The sale price is lower than the original price.
  5. The sale price is the same as the original
    price.