A manufacturer of ice skates offered a chain discount of 7/5/1. Bobby’s Sport Shop ordered 30 pairs of skates that had a list price of $925. What was the amount Bobby had to pay for the goods?
To find the amount Bobby had to pay for the goods, we need to calculate the final price after the chain discount.
A chain discount of 7/5/1 means that there are three successive discounts applied to the list price. Let's break it down:
1. The first discount is 7%. To calculate this discount, we multiply the list price by 1 - 7% (or 0.07).
Discounted price after the first discount = $925 * (1 - 0.07) = $925 * 0.93 = $859.25.
2. The second discount is 5%. To calculate this discount, we multiply the price after the first discount by 1 - 5% (or 0.05).
Discounted price after the second discount = $859.25 * (1 - 0.05) = $859.25 * 0.95 = $816.29.
3. The third discount is 1%. To calculate this discount, we multiply the price after the second discount by 1 - 1% (or 0.01).
Discounted price after the third discount = $816.29 * (1 - 0.01) = $816.29 * 0.99 = $808.13.
Therefore, Bobby had to pay $808.13 for the 30 pairs of skates.