Question

Walgreens is offered a chain discount on cosmetics from Libby Corp. of 8/5/2; Roma Company offers a chain discount of 7/6/4. What is the highest discount offered?
.14348



.839232



.85652



.160768



None of these

Answer 1

Answer: 0.0160768

Step-by-step explanation:

Let the marked price of the cosmetic be 100.

From the question,

Walgreens is offered a chain discount on cosmetics from Libby Corp. of 8%, 5% and 2%. The selling price of the cosmetic after the chain discount will be:

100 × (1 - 8/100) × (1 - 5/100) × (1 - 2/100)

= 100 × (1 - 0.08) × (1 - 0.05) × (1 - 0.02)

= 85.652

Discount = Marked price - Selling price

Discount = 100 - 85.652

Discount = 14.348

Discount percent = 14.348% = 0.14348

Roma Company offers a chain discount of 7%, 6% and 4%.

The selling price of the cosmetic after the chain discount will be:

100 × (1 - 7/100) × (1 - 6/100) × (1 - 4/100)

= 100 × (1 - 0.07) × (1 - 0.06) × (1 - 0.04)

= 83.9232

Discount = Marked price - Selling price

Discount = 100 - 83.9232

Discount = 16.0768

Discount percent = 16.0768% = 0.0160768

The highest discount offered is 0.0160768.