The cost of an item is $150. If there is a discount of 20%, what is the sale price of the item?

• A. $130
• B. $120
• C. $100
• D. $140

Answer: (B)

To find the sale price of an item after applying a discount, you start by calculating the amount of the discount and then subtracting that from the original price.

In this case, the original cost of the item is $150, and the discount is 20%. To determine the discount amount, you calculate 20% of $150:

1. Convert the percentage to a decimal by dividing by 100:

20% = 20/100 = 0.20.

2. Multiply the decimal by the original price:

Discount = 0.20 × $150 = $30.

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

Sale Price = Original Price - Discount = $150 - $30 = $120.

This means that after the discount is applied, the sale price of the item is $120. Therefore, the correct answer reflects the calculation of the discount and the subsequent subtraction accurately, leading to the final sale price as $120.