Examkin

Question

Difficulty: MediumDiscounts and Sale Prices

A bakery owner is purchasing a new commercial dough mixer. The original price of the mixer is $1,500\$1,500. The restaurant supply store is running a promotional sale offering a 20%20\% discount on all equipment. Additionally, the owner receives an extra 10%10\% discount on the sale price for paying directly through a business bank transfer. What is the final sale price of the dough mixer in dollars?

Answer: 1080 $

Answer

The final sale price of the dough mixer is $1,080\$1,080.
To find the final price after successive discounts, each discount must be applied sequentially to the updated balance. First, applying the 20%20\% discount to the original $1,500\$1,500 price reduces it by $300\$300, resulting in an intermediate sale price of $1,200\$1,200. The subsequent 10%10\% discount is then applied to this new $1,200\$1,200 balance, taking off an additional $120\$120. Subtracting $120\$120 from $1,200\$1,200 yields a final price of $1,080\$1,080.

Step-by-Step Solution

1
Calculate the amount of the first discount.
$1,500×0.20=$300\$1,500 \times 0.20 = \$300
The promotional discount applies to the original base price.
2
Determine the intermediate sale price after the first discount.
$1,500−$300=$1,200\$1,500 - \$300 = \$1,200
Subtracting the discount from the original price gives the new price before further markdowns.
3
Calculate the amount of the second discount.
$1,200×0.10=$120\$1,200 \times 0.10 = \$120
Successive discounts are calculated based on the new reduced sale price, not the original price.
4
Determine the final price after the second discount.
$1,200−$120=$1,080\$1,200 - \$120 = \$1,080
Subtracting the second discount from the intermediate price yields the final amount owed.

Key Concept

Successive/Chain Discounts
Rate this question

Topics

Discounts and Sale Prices

More questions from this topic