Question

A member has a monthly membership for $480 per month. They also have a 25% discount on top of the monthly price and have paid for 1 month of service to date. In an attempt to retain the member, you offer a 40% discount instead. With the new discount and since the member already paid for a month of service, you will need to provide a refund for the difference. How much would you refund for the month already paid?

Answer 1

$72

Explanation:

For the first month, they got a 25% discount, aka $120 off. Now that it's changed to 40%, you need to find how much 40% of $480 is.

480 x .4 = 192

40% of $480 is $192. The next step is to find the difference between $192 and $120.

192 - 120 = 72

Therefore, you need to give them of refund of $72.