We give two types of discount in the example
below:
A mechant gives 10% dicount on TV sets. Another merchant
gives a double discount of 6% and over that another 4% . Where to go for our adantage . The
second type of double discount looks the same as the 2 discounts the 2nd merchant gives add up
to 10%.
So let us calculate if the original price is
$1000.
In the first type we get 10% of 1000 = $100. we save $100
over the original price.
In the 2nd type , 6% of $1000 =
$60.
So the price after 6%discount = $(1000-60) =
$940.
4% discount over $940 = $940*0.04 =
$37.6.
So the final price after discount = 940 - 37.6 =
$902.4.
So the the savings is $(1000 - 902.4) =
$97.6.
Therefore the first one better from the point of view of
purchaser. The second is better for the seller.
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