Answer:
- $240
- the sale price on the first machine is lower
Explanation:
Two washing machines are offered at $480, with one marked down 50% and the other marked down 30% and another 20% off. You want to know why the first machine has a better price, and what that price is.
First machine
The price after a 50% markdown is ...
$480 × (1 -50%) = $480 × 0.50 = $240 . . . first machine sale price
Second machine
The price after a 30% markdown is ...
$480 × (1 -30%) = $480 × 0.70
After the additional 20% markdown, the price is ...
($480×0.70) × (1 -20%) = $480 × 0.70 × 0.80
= $480 × 0.56 ≈ $269
Better deal
The first machine is a better deal, because The 50% markdown is off the original price.
The 30% markdown on the second machine is off the original price, but the additional 20% is off the reduced price. Hence the total markdown is not as great as on the first machine.