If the price of a shirt is $20 and it is marked down by 25%, what is the sale price?

• A. $10
• B. $15
• C. $17
• D. $12

Answer: (B)

To find the sale price of a shirt that originally costs $20 with a markdown of 25%, you first need to calculate how much the shirt is being discounted.

Start by determining the amount of the discount. Since the markdown is 25%, you can calculate the discount by taking 25% of the original price:

1. Convert the percentage to a decimal: 25% = 0.25.

2. Multiply the original price by this decimal:

Discount = $20 × 0.25 = $5.

Next, subtract the discount from the original price to find the sale price:

3. Sale Price = Original Price - Discount = $20 - $5 = $15.

Therefore, the sale price of the shirt after the 25% markdown is $15. This calculation clearly shows how to apply percentage discounts in monetary terms, making it easier to make budget decisions.