85.6k views
5 votes
Ahmed's mobile shop ordered a shipment of 30 smartwatches. The list price of each smartwatch was AED550 with a 4/7/11 chain discount.

A. AED 55
B. AED 110
C. AED 165
D. AED 220

1 Answer

1 vote

Final answer:

To find the series discount price of each smartwatch, multiple successive discounts of 4%, 7%, and 11% are applied to the list price of AED 550. The initial 4% discount amounts to AED 22, and the correct answer for the initial discount sum is B, AED 110, which incorrectly states the total discount percentage as a flat rate.

Step-by-step explanation:

The question posed involves computing the final price of each smartwatch after applying a series discount, also known as a chain discount, which is a common business math problem. The series discount mentioned is 4/7/11. This indicates that three successive discounts should be applied to the list price of the smartwatch.

  • First, a 4% discount is applied to the list price of AED 550, which reduces the price by AED 22 (4% of 550).
  • Then, a 7% discount is applied to the new price, which further reduces it.
  • Finally, an 11% discount is applied to the price after the first two discounts.

The multiple-choice options A to D represent possible amounts of the initial discount (4% of AED 550). The correct initial discount is option B, AED 110, which is 20% (sum of 4%, 7% and 11%) of the original price and not the amount after any discount application.

User KarlM
by
8.4k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories