Question

A local bookstore has a sale on all their paperbacks giving a 10% discount. You also received a coupon in the mail for $4 off your purchase. If you buy 2 paperbacks at $8 each, is it less expensive for you to apply the discount before the coupon or after the coupon?

Answer 1

Discount before the Coupon

Explanation:

The cost of two paperbacks at $8 each=2 X $8 =$16

First, we determine for the case in which the coupon is applied first.

If the $4 Coupon is applied,

Cost=$16-$4 = $12

If the 10% discount is further applied,

Amount to be paid = $12-(10% of $12) =$12-1.2= $10.8

However if the discount is applied first,

Book Cost=$16-(10% of $16)=16-1.6=14.4

If the Coupon is then applied,

Amount to be paid= $(14.4-4)=$10.4

Since $10.4 is less than $10.8, we conclude therefore that it is less expensive to apply the discount first.