An item originally priced at $120 is discounted 25%, and then an additional 10% is taken off the new price. What is the final price?

Apply the discounts one at a time. A $25\%$ discount leaves $75\%$ of the price: $120(0.75)=90$. Then $10\%$ off the new price leaves $90\%$: $90(0.90)=81$ dollars, choice G. Choice F ($78) treats the discounts as a single combined $35\%$ off, $120(0.65)$, but the second discount applies to a smaller amount. Choice J ($102) subtracts only $15\%$, which is the difference between the two rates rather than a combination of them. Choice H ($90) applies only the first discount. Successive percent changes multiply: $0.75\cdot0.90=0.675$.