Question

The manager of a restaurant offers a 20% decrease in price to tennis teams. A cashier applies a 10% decrease and then another 10% decrease. Is this the same as applying a 20% decrease

Answer 1

Answer: No

Explanation:

20% decrease in price refers to the

`(1-20\%)=(1-0.2)=0.8`

i.e. 0.8 times the original price

while a successive decrease of 10% refers to

`(1-10\%)(1-10\%)=(1-0.1)(1-0.1)=0.9*0.9=0.81`

0.81 times of original price

So, a 20% discount is a bigger discount than two 10% discounts