Question

A coat originally cost $300. The price was decreased by 20%. A week later it was marked down again, this time by 40%. What is the final price of the coat?

a. $144
b. $180
c. $192
d. $200

Answer 1

The final price of the coat is $144.

To calculate the final price, we first apply a 20% discount to the original cost of $300. This results in a price of $240. Then, a 40% discount is applied to $240, leading to a final price of $144.

Step-by-step explanation:

The initial cost of the coat is $300. When a 20% discount is applied, we find the discounted price by subtracting 20% of $300 from the original cost:
`\( $300 - (0.20 * $300) = $240 \)`.

Next, a 40% discount is applied to the discounted price of $240:
`\( $240 - (0.40 * $240) = $144 \)`.

Therefore, the final price of the coat after both discounts is $144.

Discount calculations involve multiplying the original price by the percentage discount in decimal form. Understanding how to calculate discounts is essential for consumers and businesses alike, helping them make informed purchasing decisions and set appropriate pricing strategies.