The price of an item has increased 15% since last year. however, a person can buy the item for a 25% employee discount. the employee pays $172.50. what was the price last year? show work to justify your answer.
group of answer choices

$200

Explanation:

The employee pays $172.50 and he got 25% employee discount.

If the cost is $100, he pays $(100 - 25) = $75.

So, employee pays =  

100

75

⋅

172.50

= $230.00.

Again, price was increased by 15% last year. So whose cost is $100

is sold by $(100+15) = $115.

When sell price is $115, then cost price is $100. Then,

when sell price is $230, then cost price is  

100

115

⋅

230

= $200.

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