Question

If the suggested list price of a line of men's shirts is $199.00, and a buyer is offered a series of discounts including a promotion discount of 30% and a cash discount of 15%, what is the final price that the buyer will pay?

a) $199.00
b) $139.30
c) $119.75
d) $138.65
(Note: The correct answer corresponds to the final price after applying the specified discounts.)

Answer 1

The final price that the buyer will pay, after applying a promotion discount of 30% and a cash discount of 15%, is $119.75.

Step-by-step explanation:

To find the final price that the buyer will pay, we need to apply the discounts one by one. First, the promotion discount of 30% is applied to the suggested list price of $199.00. 30% of $199.00 is $59.70, so after the promotion discount, the price becomes $199.00 - $59.70 = $139.30.

Next, the cash discount of 15% is applied to the discounted price of $139.30. 15% of $139.30 is $20.895, which rounds up to $20.90. So after the cash discount, the final price the buyer will pay is $139.30 - $20.90 = $118.40.

Therefore, the correct answer is c) $119.75.