Question

A refrigerator is priced at $1,250. There are two options offered to reduce the price: either a 25% discount off the price or a rebate of $300. Which is the better choice, and what is the extra amount saved?

The 25% discount is better; it saves $12.50 more.

The rebate is better; it saves $12.50 more.

The 25% discount is better; it saves $75 more.

The rebate is better; it saves $75 more.

Answer 1

The 25% discount is better, you save $12.50 more so your saving 312.50 than the $300 rebate

Answer 2

25% is a bigger saving. And you get 12.50 more than the rebate.
25% saving of 1250 is $312.50.