Chapter 7.6, Problem 5P

The price of play equipment for the school has just been reduced by 25%. The new, reduced price of the play equipment is $1500. Bob says he can find the original price (before the reduction) in the following way:

First I noticed that 25% is $\frac{1}{4}$ . Then I found $\frac{1}{4}$ of $1500, which is $375. Next I added $1500 and $375, so the original price was $1875.

Is Bob’s method correct or not? If it’s correct, say so and also explain how to solve the problem in another way. If it’s not correct, explain briefly why not and show how to modify Bob’s method to solve the problem correctly.