Question

Jaena is purchasing a new pair of shoes that coast $89. She has a coupon for $10 and a the shoes are marked 12% off. She is allowed to use the coupon and the 12% discount. How should she use the coupon and discount (what order) to get the lowest sales price? Explain your reasoning.

Answer 1

She should apply the discount first.

Explanation:

Giving the following information:

Selling price= $89

Discount rate= 12%

Coupon= $10

When you apply a percentage to increase or decrease a nominal number, the higher the number bigger the percentage. Therefore, first, we need to apply the percentage discount and the coupon.

We will demonstrate:

Discount percentage first:

Discount= 89*0.12= $10.68

Coupon= $10

Purchase price= 89 - 10.68 - 10

Purchase price= $68.32

Coupon first:

Coupon= $10

Discount= (89 - 10)*0.12= $9.48

Purchase price= 89 - 10 - 9.48

Purchase price= $69.52