A wagon is on sale for 20% off. The sale price of the wagon is $114. What was the original price of the wagon, assuming no sales tax is paid on the item? Round your answer to the nearest cent.

The 114 represents 80% of the total price before the sale. You would set up your equation as

Cost Price * 80% = Sale Price.

Sale Price = 114

80% = 80/100 = 0.8

Cost Price = 114/0.8

Cost Price = 142.50 which is the price before the deduction. You can confirm this by taking 20% of 142.50 and subtracting it form 142.50

20% * 142.50

20/100 * 142.50

2850/100

28.50

Now subtract 28.50 from 142.50

142.50 - 28.50 = 114 which is just what you might expect.