Retailers often mark down products in order to attract custo

Retailers often mark down products in order to attract customers. We all like a good sale at our favorite store This week we will discuss successive discounts. Here is an example of a successive discount. I went to my favorite store and I found a purse on sale for 30% off. Luckily that day, the store also offered an additional 25% off the already discounted price The original price of the purse was $120. How much did I pay for the purse if the sales tax rate is 8.25%. Here is how I can find the final price: Find the complements of the discounts: The complement of 30% is (100% - 30%) = 70% = 0.70. The complement of 25% is (100% - 25%) = 75% = 0.75 Multiply the original price by the complements of the discounts ($120)(0.70)(.75) = $63. This is the sale price. Now find the total price including tax. To do this multiply the sale price by (1 + the sales tax) ($63)(1 + .0825) = $68.20 This is the total price I paid. Find an example of a successive discount either from your favorite store in a weekly circular or on the Internet Show all your calculations for finding the sale price (using the example above as a guideline) including the sales tax using the sales tax rate in your community. Discuss how most people miscalculate success discussions in comparison to the calculation you posted and explain the reasons for the miscalculation most people do.

Solution

Solution:

I went to my favourite store and i found Denim jeans on sale for 50% off . Luckily the store also offered an additional 20% off the already discounted price .The original price of Jeans was Rs1500.

finding the complement of discounts:

complement of 50% is (100%-50%)=50%

complement of 20% is (100%-20%)=80%

multiply the original price by complement of discount

1500*0.5*0.8=Rs 600...This is the sale price

To find the total price including tax rate (14.95%)...we multiply the sale preice by (1+the sale tax)

600*(1+0.1495)=Rs 689.7...This is the total price I paid

Often people misinterpret discount as summation like (50+20)=70% discount but here we can see that later 20% is not on entire 100% but it actually on remaining 50% thus making an overall discount of 50+0.2*50=60% not 70 %