The problem in the image asks the following:

"An item is originally priced to sell for $70 and is marked down 40%. A customer has a coupon for an additional 5%. What is the total percent reduction and the final selling price?"

Solution:

Step 1: Apply the 40% Markdown

• Original price = $70
• First discount = 40%

The price after the first discount is:

\text{Price after 40% discount} = 70 - (70 \times 0.40) = 70 - 28 = 42

Step 2: Apply the Additional 5% Discount

• Price after 40% discount = $42
• Second discount = 5%

The price after the additional 5% discount is:

\text{Price after 5% discount} = 42 - (42 \times 0.05) = 42 - 2.10 = 39.90

So, the final price is $39.90.

Step 3: Total Percent Reduction

The total percent reduction is calculated based on the original price:

$\text{Total reduction} = 70 - 39.90 = 30.10$

The percentage reduction is:

$\frac{30.10}{70} \times 100 = 43\%$

Final Answer:

• Total percent reduction = 43%
• Final selling price = $39.90

Would you like any further details or explanations on this?

Here are 5 related questions:

1. How do you calculate discounts when multiple percentages are applied?
2. What is the difference between successive discounts and a single equivalent discount?
3. How do you calculate the original price if you know the final price and discount percentages?
4. What is the effect of compounding discounts compared to applying them together?
5. How do price reductions impact business profits and customer satisfaction?

Tip: Always apply multiple discounts step by step, not by summing the percentages directly.