If the price increases by 5%, you need to spend an additional 12,500 rubles for the purchase

If the price increases by 5%, you need to spend an additional 12,500 rubles for the purchase of a coat. How much did the coat cost before the price increase?

The initial cost of the coat is defined through the dummy variable “Y”.

Given the information of the example, we have this proportion: 5% relate to 12,500 rubles, as 100% relate to U rubles.

Based on the aspect ratio, we have this equation: Y x 5 = 12,500 x 100.

The outcome of solving this equation has the value Y = 12,500 x 100/5 = 12,500 x 20 = 250,000 rubles.

Answer: the initial cost of the coat is 250,000 rubles.