Question

1. I want to purchase a $240 stationary bike at the local warehouse store. The stationary bike is on

sale for 25% off. I found a coupon in the newspaper for an additional 10% off any item in the
store. Since I am a member of the warehouse, I also get a 5% discount during my birthday month.
In which order should I have the checkout clerk apply these discounts? Explain.

Answer 1

The discounted rate after applying 3 discount rates at the bike is $153.9.

Explanation:

The marked price of the stationery bike = $240

Now, sale discount on bike = 25% off.

Calculating the sales discount:

25% of 240 =
`(25)/(100)  * 240   = 60`

So, the discount offered is $60.

So, the Discounted Price = Actual Price - Discount

= $240 - $60 = $180

Now, 10 % additional off is availed on the discounted price of $180.

So, 10% of 180 =
`(10)/(100)  * 180   = 18`

⇒ The discount offered is $18.

So, the second Discounted Price = $180 - $18 = $162

Again, on the discounted price, an additional 5 % off is applied.

So, 5% of 162 =
`(5)/(100)  * 162   = 8.1`

⇒ The discount offered is $8.1.

So, the Third Discounted Price = $162 - $8.1 = $153.9

⇒ The final Cost price of the stationary bike is $153.9

Hence the discounted rate after applying 3 rates at the bike is $153.9.