Question: 4 . A store is currently offering a 6 0 % discount on all items purchased. Your cashier is trying to convince you to open

4. A store is currently offering a 60% discount on all items purchased. Your cashier is trying to convince you to open a store credit card and says to you, " In addition to the 60% discount you are receiving for purchasing these items on sale today, you will get an additional 20% off for opening a credit card account. That means you are getting 80% off!"
a. What is the mistaken assumption here?
b. Why is that assumption incorrect?
c. If you did truly have 80% discount, explain what should happen when you go to the counter to buy $500 worth of items? show calculation
d. If you got your 60% discount and opened the card for an additional 20% what is the actual % discount you would receive? show calculation
e. Is it better to apply the 60% discount first or the 20% discount first? show calculation
 4. A store is currently offering a 60% discount on all

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!