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Over the past 6 months, the price of a speaker has undergone many price increases and reductions. Originally the speaker was $430 and then it incurred a price reduction of 20%. 2 months later the price was increased by 20%. After another 2 months the price was then reduced by 15%, only to be increased by 20% 2 months following that.Find the price of the speaker at the end of the 6 months.Give your answer correct to the nearest cent.

Question

Over the past 6 months, the price of a speaker has undergone many price increases and reductions. Originally the speaker was $430 and then it incurred a price reduction of 20%. 2 months later the price was increased by 20%. After another 2 months the price was then reduced by 15%, only to be increased by 20% 2 months following that.Find the price of the speaker at the end of the 6 months.Give your answer correct to the nearest cent.

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Solution

Let's break this down:

  1. The speaker originally costs $430.

  2. It first incurred a price reduction of 20%. To find the new price, we multiply the original price by 20% (or 0.20) and subtract that from the original price.

    4300.20=430 * 0.20 = 86.

    430430 - 86 = $344.

    So, after the first price reduction, the speaker costs $344.

  3. Two months later, the price was increased by 20%. To find the new price, we multiply the current price by 20% (or 0.20) and add that to the current price.

    3440.20=344 * 0.20 = 68.80.

    344+344 + 68.80 = $412.80.

    So, after the price increase, the speaker costs $412.80.

  4. After another two months, the price was reduced by 15%. To find the new price, we multiply the current price by 15% (or 0.15) and subtract that from the current price.

    412.800.15=412.80 * 0.15 = 61.92.

    412.80412.80 - 61.92 = $350.88.

    So, after the second price reduction, the speaker costs $350.88.

  5. Two months following that, the price was increased by 20%. To find the new price, we multiply the current price by 20% (or 0.20) and add that to the current price.

    350.880.20=350.88 * 0.20 = 70.18.

    350.88+350.88 + 70.18 = $421.06.

    So, after the second price increase, the speaker costs $421.06.

Therefore, at the end of the 6 months, the speaker costs $421.06.

This problem has been solved

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