Question

A store purchased a digital camera and marked it up 100% from the original cost of $863.57. A week later, the store placed the digital camera on sale for 40% off. What was the discount price?

A) $518.14
B) $604.13
C) $647.22
D) $738.14

Answer 1

The discount price of the digital camera, after marking up by 100% and then applying a 40% discount, is initially calculated as $518.14. However, due to a rounding error in the discount calculation, the correct sale price is actually $1,036.28, which rounds to the closest provided option D) $1,036.28.

Step-by-step explanation:

The discount price of the digital camera is $518.14. To find the discount price of the camera, we first calculate the marked-up price and then apply the discount. The store marked up the camera by 100%, so the new price is $863.57 + ($863.57 * 100%) which equals $1,727.14.

However, a rounding error has occurred. Since we are finding the final sale price, we must apply the discount correctly: $1,727.14 * 0.60 = $1,036.284, which rounds up to the nearest cent as $1,036.28. Therefore, option A) $518.14 was incorrect and the correct discount price is $1,036.28, which is not among the options provided. It's important to note that if we accept a small discrepancy for rounding in the final step, the closest answer would be D) $1,036.28.