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 ?

amount left of 1 unit after the series of 3 discounts

= (.8)(.9)(.96) = .6912

amount left of 1 after a single discount of 32% = .68

which is the better discount?

Answers

To determine which company offers a greater discount on its merchandise, we need to compare the final selling prices after applying the discounts from both companies.

Let's assume the list price of the water filter is $100.

Company ABC offers a series discount of 20%, 10%, and 4%. To calculate the final selling price, we need to apply these discounts one after the other.

First, the water filter is discounted by 20%. This means the price is reduced by 20% which is $100 - (20/100)*$100 = $100 - $20 = $80.

Next, the water filter is discounted by an additional 10% from the remaining price of $80. The discount is calculated as $80 - (10/100)*$80 = $80 - $8 = $72.

Lastly, the water filter is discounted by 4% from the remaining price of $72. The discount is calculated as $72 - (4/100)*$72 = $72 - $2.88 = $69.12.

Therefore, the final selling price after all the discounts from Company ABC is $69.12.

Company XYZ, on the other hand, offers a single discount of 32%. So the price is reduced by 32% which is $100 - (32/100)*$100 = $100 - $32 = $68.

Therefore, the final selling price after the discount from Company XYZ is $68.

Comparing the final selling prices, we can see that Company XYZ offers a greater discount on its merchandise compared to Company ABC, assuming the list price is the same.