Question

A store is currently offering a 60% discount on all items purchased. Your cashier is trying to convince you to open a store credit card and says to you, "In addition to the 60% discount you are receiving for purchasing these items on sale today, you will get an additional 20% off for opening a credit card account. That means you are getting 80% off!"
a. What is the mistaken assumption here?
b. Why is that assumption incorrect?
c. If you did truly have 80% discount, explain what should happen when you go to the counter to buy $500 worth of items?
d. If you got your 60% discount and opened the card for an additional 20%, what is the actual % discount you would receive?
e. Is it better to apply the 60% discount first or the 20% discount first?

Answer 1

Answer:

a the assumption is that after the 60% discount, the 20% will contribute to the old price, not the adjusted price

b this is incorrect because the 20% discount will be added on after the 60% discount has been used

c the 500 dollars would turn to 100 dollars

d 40

e it would be best to first apply the 60% coupon first over the 20% coupon