Company ABC offers a series discount of 20%,10% and 4% on a type of water filter while company XYZ offers a single discount of 32% on the same type of water filter. Which company offers a greater discount on its merchandise assuming the list price is the same ?
To determine which company offers a greater discount on its merchandise, we need to compare the final prices after applying the discounts from both companies.
Let's assume the list price of the water filter is $100.
For Company ABC, they offer a series discount of 20%, 10%, and 4%. To calculate the final price, we'll apply these discounts one after the other.
First, we apply a 20% discount:
$100 - (20/100 * $100) = $100 - $20 = $80
Then, we apply a 10% discount on the already discounted price:
$80 - (10/100 * $80) = $80 - $8 = $72
Finally, we apply a 4% discount on the second discounted price:
$72 - (4/100 * $72) = $72 - $2.88 ≈ $69.12
So, the final price of the water filter from Company ABC is approximately $69.12.
For Company XYZ, they offer a single discount of 32%. To calculate the final price, we'll apply this discount directly to the list price:
$100 - (32/100 * $100) = $100 - $32 = $68
So, the final price of the water filter from Company XYZ is $68.
Comparing the final prices, we can see that Company XYZ offers a greater discount on its merchandise, as the final price is lower ($68) compared to the final price from Company ABC ($69.12).