Question

The price of a shirt was $38. It was reduced by 20% and then again by 10%.

a. What is the final price of the shirt?

b. What would the price of the shirt be if it were reduced by 30% from the original?

c. Explain why the two prices in a. and b. differ.

Answer 1

a) 38*(1-20%)*(1-10%)=27.36
b)38*(1-30%)=26.6
c)Because in question one when you take off the 10% it is 10% of the already off price but when you take off 30% it is taking off from the original price

Answer 2

A- The final price of the shirt was $27.36.

B- If it were reduced by 30% from the original price, the price of the shirt would be $26.6.

C- There is a difference between both prices because in the first case, the discount is split, making a first discount on a larger basis, and the second on a smaller basis, already made the first discount.

In contrast, at the second price, the entire percentage is made on the major basis. Therefore, the discount is larger.

Explanation:

A- The final price of the shirt is determined by the following calculation:

(38 x 0.8) x 0.9 = FINAL PRICE

38 is multiplied by 0.8 because the price was reduced by 20% (0.2 is the 20% of 1, that is, of a unit. Therefore, the remaining price would be that 0.8 or 80%)

Then, using the same logic, we have to multiply that result by 0.9 in order to get the final price.

Therefore:

(38 x 0.8) x 0.9 = 30.4 x 0.9 = 27.36

B- Here, we would have to multiply 38 x 0.7, which gives a result of 26.6