A store receives $400 cash after offering a chain discount of 10/10/5 on a good. What was the list price?
A. $492.20
B. $519.82
C. $533.33
D. $612.00
B
To find the list price, you need to reverse engineer the discounts given.
The chain discount mentioned in the question is given as 10/10/5. This means that there are three consecutive discounts: 10%, 10%, and 5%.
To reverse engineer the discounts, you can start with the final price (in this case, $400) and calculate the price after each discount.
First, remove the 5% discount by dividing the price by 0.95 (100% - 5% = 95% or 0.95). This gives you the price after the second discount.
Price after the second discount = $400 ÷ 0.95 ≈ $421.05
Next, remove the first 10% discount by dividing the price after the second discount by 0.90 (100% - 10% = 90% or 0.90). This gives you the price after the first discount.
Price after the first discount = $421.05 ÷ 0.90 ≈ $467.83
Finally, remove the second 10% discount by dividing the price after the first discount by 0.90 again. This gives you the list price.
List price = $467.83 ÷ 0.90 ≈ $519.82
Therefore, the correct answer is B. $519.82.