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Major offers a 2% cash discount while Lester offers a 3% cash discount. Major offers a $65.00 watch with a chain discount of 15/12/5 while Lester sells the same watch for $68.00 with a chain discount of 14/13/9. Which is the better deal?

User Jarda
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1 Answer

6 votes

Final answer:

To find the better deal between Major and Lester for a watch, we apply chain discounts and cash discounts to both offers. Major's final price comes to $45.54, while Lester's comes to $44.99. Thus, Lester offers the better deal.

Step-by-step explanation:

The question deals with chain discounts and figuring out which of two options is a better deal for purchasing a watch. To determine the better deal, we need to calculate the net price for the watch from both Major and Lester after applying their respective chain discounts and cash discounts.

First, we'll calculate the net price for Major's offer:

Original price: $65.00
Chain discount: 15/12/5
Effective discount = 1 - (0.85 * 0.88 * 0.95) = 1 - 0.7134 = 0.2866 or 28.66%
Net price after chain discount = $65.00 * (1 - 0.2866) = $46.47
Additional cash discount = 2%
Net price after cash discount = $46.47 * (1 - 0.02) = $45.54

Now, we'll calculate the net price for Lester's offer:

Original price: $68.00
Chain discount: 14/13/9
Effective discount = 1 - (0.86 * 0.87 * 0.91) = 1 - 0.6824 = 0.3176 or 31.76%
Net price after chain discount = $68.00 * (1 - 0.3176) = $46.38
Additional cash discount = 3%
Net price after cash discount = $46.38 * (1 - 0.03) = $44.99

After comparing both net prices, it's clear that Lester's offer, with a final price of $44.99, is the better deal compared to Major's offer of $45.54.

User Krifur
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