Math Problem Statement

you have two coupons at a local store. 1.) save 30% off your next purchase. 2) Take $100 off your next purchase. You plan to go to the store and spend $500 and uses both coupons assuming the store accepts them both, which coupon will they apply first and why?

Solution

When you use both coupons, the order in which they are applied can affect the final price due to how percentages interact with fixed discounts. Here’s the analysis for both scenarios:

1. Applying the 30% off coupon first:

  • Start with $500.
  • 30% off means you save 0.30×500=1500.30 \times 500 = 150.
  • So, the price after applying the 30% coupon: 500150=350500 - 150 = 350.
  • Now, apply the $100 off coupon: 350100=250350 - 100 = 250.

Final price: $250.

2. Applying the $100 off coupon first:

  • Start with $500.
  • First, subtract the $100 coupon: 500100=400500 - 100 = 400.
  • Now, apply 30% off to the new total: 0.30×400=1200.30 \times 400 = 120 savings.
  • So, the price after applying the 30% off coupon: 400120=280400 - 120 = 280.

Final price: $280.

Which option is better for you?

The first option, where the 30% off coupon is applied first, results in a lower final price of $250, compared to $280 when the $100 coupon is applied first. The reason for this is that a percentage discount applied to a higher initial amount ($500) yields greater savings than when it's applied to a lower amount ($400).

Why might the store choose a particular order?

If the store prioritizes maximizing its profit, it would likely apply the fixed $100 coupon first, because it results in a higher final price for the customer. However, if the store allows you to apply the coupons in the way that benefits you the most, applying the 30% off first would save you more.

Do you have any questions or want more details?


Here are 5 related questions to consider:

  1. What is the difference between percentage discounts and fixed amount discounts in general?
  2. How do coupons stack if there's a limit to how much can be discounted?
  3. What would the final price be if you only used one of the two coupons?
  4. How would sales tax affect the final price after applying both coupons?
  5. What other types of promotions might lead to similar savings?

Tip: When dealing with percentage-based discounts, applying them to larger amounts results in greater savings, so it's usually better to apply them first!

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Math Problem Analysis

Mathematical Concepts

Discount Calculation
Percentage Application
Order of Operations in Discounts

Formulas

Percentage discount: Discount = (Percentage / 100) * Price
Fixed amount discount: Final Price = Original Price - Discount

Theorems

Applying percentage-based discounts to higher amounts yields greater savings than applying them to reduced amounts.

Suitable Grade Level

Grades 8-10