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Given:
a.) Sam bought a stereo that was listed for $795.
b.) He saved 20% of the original cost by buying it at a sale and paying cash.
We will be using the following formula:
[tex]\text{ Discounted price = Original Price x (}\frac{100\text{\% - \% Discount}}{100})[/tex]We get,
[tex]\text{ Discounted price = Original Price x (}\frac{100\text{\% - \% Discount}}{100})[/tex][tex]\text{= 795 x (}\frac{100\text{\% - 20\%}}{100})[/tex][tex]\text{ = 795 x (}\frac{80}{100})[/tex][tex]\text{ = 795 x 0.80}[/tex][tex]\text{ Discounted Price = \$}636.00[/tex]Therefore, Sam paid $636 for the stereo.
The answer is letter B.