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Marrrta [24]
3 years ago
5

] Anne is a bargain-minded shopper. Normally, her favorite toothpaste costs the same at both of her local supermarkets, but the

stores are having competing sales this week. At one store, there is a bonus offer: buy 2, get 1 free. At the other store, toothpaste is being sold at 40 percent off. Anne instantly opts for the first offer. Was that really the less-expensive choice?
Business
1 answer:
andrew11 [14]3 years ago
7 0

Answer:

The correct answer is: The second option.

Explanation:

As Anne is a bargain-minded shopper, she will constantly look for paying less as much as the purchases allow it. To determine which option is the less-expensive in the example, Anne should <em>determine what is the cost per toothpaste unit</em> at each of the two local supermarkets. Thus,

- First option:

  • Suppose the price of each toothpaste is "n".
  • The store offers is buy 2 and get 1 free.
  • Then, Anne is getting 3 toothpastes paying only for 2 or: 2 x n = 2(n).
  • It implies the price of each toothpaste is: \frac{2(n)}{3}=0.67n

- Second option:

  • As the toothpaste price is equal in both stores, it will be "n"
  • The store offers a 40% discount on each toothpaste.
  • Thus, each toothpaste is only 60% of "n" or: \frac{60(n)}{100} = 0.6n

So, <em>the less-expensive choice was the second.</em>

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Results are below.

Explanation:

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4 0
3 years ago
Use the following information to answer the next three questions.
nalin [4]

Answer:

The  alignment of numbers in the first part of the question is off. However, you solve this question as shown below. The correct answer is C. $1,124.

Explanation:

This is a one-time cashflow type of question where the principal amount is invested once and no other addition is made to the account. You use the future value formula to solve the result of the compounding effect at year 3.

FV formula;

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