The price of a holiday was decreased by 12% to £600. What was the price before the decrease? Give your answer to the nearest penny.

Explanation:

If a price decreases by 12%, then you pay the remaining 88%. Notice how 88% + 12% = 100%

If x is the original price before the discount, then 0.88x represents the price after the discount, which is 600 pounds.

0.88x = 600

x = 600/0.88

x = 681.818 approximately

x = 681.82 pounds

Another way to look at it.

x = original price before discount

12% of x = 0.12x = amount you save

x - 0.12x = (1-0.12)x = 0.88x = final price after discount = 600

The steps afterward are the same as above.

If the original price is £681.82, and the discount is 12%, then you save 0.12*681.82 = 81.8184 = 81.82 pounds. So the final price is 681.82 - 81.82 = 600 pounds which verifies the answer.