Question

Suppose you want to buy 100 pens. You can buy 100 pens at a 10% discount at one store where the price is $6.99 per pen. And you can also buy 100 pens at a 15% discount at another store where the price is $7.48 per pen.

Required:
a. What is the price per pen at the first store?
b. What is the price per pen at the second store?
c. What is the total price difference for 100 pens?

Answer 1

a. $629.10

b. $635.80

c. $6.70

Explanation:

The first thing we need to do is turn these percentages into decimal values by dividing them by 100, this would make 10% into 0.10 and 15% into 0.15. Now we can make the following equations to calculate the total by multiplying the 100 pens by the individual pricer per pen, and then multiplying that product by the 1 minus the discount percentage.

A) (100 * 6.99) * (1 - 0.10) = x

699 * 0.90 = x

$629.10 = x

B) (100 * 7.48) * (1 - 0.15) = x

748 * 0.85 = x

$635.80 = x

C) 635.80 - 629.10 = $6.70

The difference is $6.70 more for the 100 pens in the second store.