Concept:A discount reduces the original price, so the amount paid equals the original price minus the discount.Explanation:Let the original price be x dollars.The discount is 20% of x, so the discount amount is 10020x=0.2x.After the discount, the amount paid is:525=x−0.2x.Simplify the right-hand side:525=0.8x.Divide both sides by 0.8 to find x:x=0.8525=656.25.Check: 20% of $656.25 is $131.25, and $656.25−$131.25=$525.00.Answer:C. $656.25