Answer:
Step-by-step explanation:
Let X be the initial price in March 2004.
Let X' be the price for March 2005.
Let X" be the price for June 2005.
March 2005: The price was reduced by 20%. Thus, X' = 0.8X
June 2005: The price was reduced by 1/6 of the March 2005 price: Thus,
X" = X' - (1/6)X'
Substituting, we have X" = (0.8X) - (1/6)(0.8X)
X" = (0.8X) - (1/6)(0.8X)
X" = (0.8X) - (0.1333X)
X" = 0.6667X
The June 2005 price is 0.6667 of the 2004 price. That's a (1-0.6667) or 33.33% reduction.
