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Explain which would give you the best price: a discount of 15%, and then 10% off that amount; a discount of 10%, and then 15% off that amount; or a discount of 25%.

1 Answer

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Final answer:

After calculating, both the sequential discounts of 15% followed by 10%, and 10% followed by 15%, result in a final price of 76.5% of the original. A single discount of 25% reduces the price to 75% of the original, making it the best option.

Step-by-step explanation:

The question is about calculating which discount strategy yields the best price. To determine this, we compare the effects of a sequential discount of 15% followed by 10%, a discount of 10% followed by 15%, and a single discount of 25%.

For the first situation with successive discounts, assuming the original price is 1 (or 100%), we calculate the first discount of 15%, which results in a price of 0.85 (85%). Then, applying 10% off on this reduced price, we get:
0.85 x (1 - 0.10) = 0.85 x 0.90 = 0.765 or 76.5% of the original price.

For the second situation, taking 10% off first (1 - 0.10 = 0.90), and then applying 15% off that reduced price, we get:
0.90 x (1 - 0.15) = 0.90 x 0.85 = 0.765 or 76.5% of the original price.

If we consider a single discount of 25%, the final price is:
1 - 0.25 = 0.75 or 75% of the original price.

Comparing the results, a single 25% discount provides the best price, since the final price is lower than that obtained through either of the sequential discounts.

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