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Julie had $500. She spent 20% of it on clothes and then 25% of the remaining money on CDs. How much money did Julie spend?
Find out 20% of $500 by multiplying $500 by the decimal equivalent of 20% (0.20); $500 × 0.20 = $100. She spent $100 on clothes and leaving her with $400. Find out 25% of $400; 0.25 × 400 = $100. Julie spent $100 on CDs. $100 on clothes plus $100 on CDs totals $200 spent. If you chose a, you found 45% (20% + 25%) of the total without taking into account that the 25 percent was on the amount of money Julie had AFTER spending the original 20%.
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