Question

ASAP ASAP

A couple pays £1200 for a holiday in Portugal. Unfortunately, due to the pandemic the holiday
company cancels the holiday and gives the customers this option:
Rebook another holiday and get a 20% incentive*
We have a range of alternative holidays available for you to choose from and would love to take
you are away on holiday. Plus, if the holiday you book is more expensive than your original holiday,
you’ll automatically receive an incentive worth up to 20% of the value of the holiday*.

a. The customers find an alternative holiday in Greece costing £1800, for them both, before discounts. Use a non-calculator method to show what the cost of this holiday will be once the discount mentioned above has been applied.

Answer 1

The customers find an alternative holiday in Greece costing £1800, for them both, before discounts.

To calculate the cost of the holiday after the 20% incentive discount has been applied, we need to first determine the total value of the incentive.

We can do this by multiplying the original cost of the holiday (£1200) by 20% (0.20).

£1200 x 0.20 = £240

So the incentive is worth £240.

Now we can subtract this amount from the cost of the new holiday to find the final cost.

£1800 - £240 = £1560

So the final cost of the holiday in Greece after the 20% incentive discount has been applied is £1560.