Answer:
The original cost amounts to $10
Step-by-step explanation:
Let us denote the cost as x
where Price = x + (0.5x) = 1.50x
Now, the price after reduction is 20% of 1.50x
which is 0.3x 
This leads to the equation 1.50x - 0.3x = 12
resulting in 1.2x = 12
which gives us x = 10
thus, the cost is $10
Given data:
a₃ = 9/16
aₓ = -3/4 · aₓ₋₁
Here, x represents the number of terms ('x' can also be referred to as 'n')
To determine the 7th term (a₇):
We know that aₓ = -3/4 · aₓ₋₁
Thus,[ [TAG_10]]a₃ = -3/4 · a₃₋₁
a₃ = -3/4 · a₂
9/16 = -3/4 · a₂
a₂ = 9/16 × -4/3
a₂ = -36/48
a₂ = -3/4
Next,[ [TAG_20]]aₓ = -3/4 · aₓ₋₁
a₄ = -3/4 · a₄₋₁
a₄ = -3/4 · a₃
a₄ = -3/4 · 9/16
a₄ = -27/64
a₄ = -27/64
For a₅,[ [TAG_30]]aₓ = -3/4 · aₓ₋₁
a₅ = -3/4 · a₅₋₁
a₅ = -3/4 · a₄
a₅ = -3/4 × -27/64
a₅ = 81/256
For a₆,[ [TAG_39]]aₓ = -3/4 · aₓ₋₁
a₆ = -3/4 · a₆₋₁
a₆ = -3/4 · a₅
a₆ = -3/4 × 81/256
a₆ = -243/1024
Finally, for a₇,[ [TAG_48]]aₓ = -3/4 · aₓ₋₁
a₇ = -3/4 · a₇₋₁
a₇ = -3/4 · a₆
a₇ = -3/4 × -243/1024
a₇ = 729/4096