Joseph wants to buy a new tennis racquet which cost $200 from the factory. The sports shop marks up the price by 60%. Joseph bought the racquet when the shop had a 25% off sale. How much profit did the shop make?

Use multipliers:

The normal price the shop would sell the racquet for is:

1.6 * 200 = 320

'1.6' is the multiplier that I got using the percentage. Multiplying a value by 1.6 is the same as increasing the value by 60%. If you multiplied it by 0.1 (which is the same as dividing by 10), you would get just 10% of the value.

Back to the question, now we can use the multiplier 0.75 because we are are reducing the price by 25% (0.25 as a decimal), so:

320 * 0.75 = 240

And now we want just the profit so we take off how much it cost the shop to buy ($200) : 240 - 200 = 40