Problem:
An antique store increases all of its prices by 40%, and then announces a 25%-off-everything sale. What percent of the original prices (before the increase) are the new prices?

Read the question carefully! The problem doesn't ask for the percent increase overall -- it asks what percent the new prices are of the original prices.

Respuesta :

Let
x--------------- > original price

when the store increases all of its prices by 40%-----------price2=1.40x

when the store 
announces a 25%-off-everything sale-----> price3=0.75*(1.40x)
 price3=1.05x------------ > (1.05-1)=0.05-----------> 5%

the answer is 

New prices (price3) are 5% higher than the original price (x)