Question

A model car is for sale online. Beginning on day one, the owner discounts the price by 5% each day until it sells. On the third day the car sells.

If the original price of the model car was $40, how much did the car sell for to the nearest cent?

Answer 1

The final sale price of the model car on the third day, after being discounted by 5% each day from an original price of $40, was $34.30 to the nearest cent.

Step-by-step explanation:

The original price of the model car was $40. On the first day, it was discounted by 5%, and again on the second and third days. To find the final sale price on the third day, we calculate the price reduction for each day and then apply it to the original price successively.

First day price: $40 - (5% of $40) = $40 - ($40 × 0.05) = $40 - $2 = $38

Second day price: $38 - (5% of $38) = $38 - ($38 × 0.05) = $38 - $1.90 = $36.10

Third day price (final sale price): $36.10 - (5% of $36.10) = $36.10 - ($36.10 × 0.05) = $36.10 - $1.805 = $34.295, which when rounded to the nearest cent is $34.30.