Problem 22 (1988 AJHSME)

AJHSMEEasy

Problem

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?

Select an answer

The sale price is $5\%$ higher than the original price.
The sale price is higher than the original price, but by less than $5\%$.
The sale price is higher than the original price, but by more than $5\%$.
The sale price is lower than the original price.
The sale price is the same as the original price.

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