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.