Question

A magazine advertisement states that a subscriber saves 75.6% off the cover price at news stands by purchasing a 17-issue subscription rather than purchasing the 17 issues separately at the cover price. If a 17-issue subscription costs $10.99, what is the average cover price of each magazine when bought at a news stand? Express your answer as a decimal to the nearest hundredth.

Answer 1

$2.65

Explanation:

If the 17-issue subscription costs $10.99 and it offers a 75.6% discount from buying all 17 issues separately, buying all 17 issues at a news stand would cost:

`P_(17) = (\$10.99)/((1-0.756)) \\P_(17)= \$45.041`

Threfore, the price of a single issue is:

`P_(1)=(P_(17))/(17) =(\$45.041)/(17)\\P_(1) = \$2.65`

The average cover price of each magazine when bought at a news stand is $2.65