Question

The local fitness center offers membership discounts for hospital employees. According to the membership brochure.

you will receive a discount of 25% on a membership that normally costs $65 per month.
How much will you pay for an annual membership if you receive an additional 10% discount by paying a year in advance?

Answer 1

$526.50

Explanation:

You want the cost of an annual membership if the normal price is $65 per month and you have a 25% off coupon. You pay in advance, so save an additional 10%.

Discounted price

The annual membership will cost 12 times the monthly cost, or ...

$65 · 12 = $780

When a 25% discount is applied, the discounted cost is ...

$780 · (1 -25%) = $780 · 75% = $585

Pay in advance

Since you pay in advance, you get an additional 10% off, so you pay ...

$585 · (1 -10%) = $585 - 58.50 = $526.50

You will pay $526.50 for an annual membership by paying in advance.