Question

Lucky you! You went to couponcabin.com and found a 25% off coupon to your significant other’s favorite store. Armed with that coupon, you went to the store only to find a storewide sale offering 20% off everything in the store. In addition, your credit card has a special offer that allows you to save 15% if you use your credit card for all purchases that day. Using your credit card, what will you pay before tax for the $300 gift you found? Use the single equivalent discount to calculate how much you save and then calculate your final price. (Do not round intermediate calculations. Round your final answers to the nearest cent.)

Savings:

Final Price:

Answer 1

Item Price = $300

***Less: Coupon @25% = $300 * 25% => $75

Price before payment = $225

Less: 15% savings via credit card = @225 * 15% => $33.75

Final Price = $225 - $33.75 => $191.25

Savings = Item price - Final price

Savings = $300 - $191.25 => $108.75

*** Since the store was offering 20% off on all purchase and we have a coupon of 25% off, only one discount will be applicable. Rationally we will choose the one which is offering higher discount i.e. 25% off.