1. I want to purchase a $240 stationary bike at the local warehouse store. The stationary bike is onsale for 25% off. I found a coupon in the newspaper for an additional 10% off any item in thestore. Since I am a member of the warehouse, I also get a 5% discount during my birthday month.In which order should I have the checkout clerk apply these discounts? Explain.
Accepted Solution
A:
Answer:The discounted rate after applying 3 discount rates at the bike is $153.9.Step-by-step explanation:The marked price of the stationery bike = $240Now, sale discount on bike = 25% off.Calculating the sales discount:25% of 240 = [tex]\frac{25}{100} \times 240 = 60[/tex]So, the discount offered is $60.So, the Discounted Price = Actual Price - Discount = $240 - $60 = $180Now, 10 % additional off is availed on the discounted price of $180.So, 10% of 180 = [tex]\frac{10}{100} \times 180 = 18[/tex]⇒ The discount offered is $18.So, the second Discounted Price = $180 - $18 = $162Again, on the discounted price, an additional 5 % off is applied.So, 5% of 162 = [tex]\frac{5}{100} \times 162 = 8.1[/tex]⇒ The discount offered is $8.1.So, the Third Discounted Price = $162 - $8.1 = $153.9⇒ The final Cost price of the stationary bike is $153.9Hence the discounted rate after applying 3 rates at the bike is $153.9.