Which gives a larger discount on a $200 purchase: a discount of 20% followed by a discount of 35% OR a single discount of 50%?

Question

Which gives a larger discount on a $200 purchase: a discount of 20% followed by a discount of 35% OR a single discount of 50%?

Answer 1

Best way to solve discount or markup problems (especially multiple actions) is to think in terms of multipliers:

10% markup = P x 1.1 and 20% discount is P x .80 where P is intial price.

That way you can just apply any multiplicative changes on after the other. In this case you are comparing

P(.5) = .5P with

P(.80)(.65) = .52P

Take care.