Which of the following discounts would save you more money?

Question

there are two clearance racks and the one rack has a flat 50% discount from the original price, and the second rack has an additional 30% dicount from the already 20% discounted items. If you were to buy items with equal original prices ,which would be the better buy.

 

i am trying to answer this as a discussion question and I have to show my work. Could you help.

Answer 1

Let  X = original price of rack 1 and same for rack 2

 

For rack 1 new price = X/2 = 0.5 X

 

For rack 2

 with 20% discount price becomes 0.8 X

 further discount on this = 30% or 3/10

New discount = ( 0.8X )x 3/10 = 24 X /100 = 0.24 X 

 

New price  Discounted price - new discount 

= 0.8 X - 0.24 X = 0.56 X , which is more than 0.5 X

So flat 50%  discount is a better buy from rack 1