Answer:
Step-by-step explanation:
Let x represent the original price of the model.
A builder of tract homes reduced the price of a model by 15%. This means that x was reduced by 15%. The amount by which x was reduced would be
15/100 × x = 0.15 × x = 0.15x
The new price would be
x - 0.15x = 0.85x
If the new price is $425,000, then it means that
0.85x = 425000
x = 425000/0.85
x = $500000
The amount that can be saved by purchasing the model at the new price would be
500000 - 425000 = $75000
