a $60 jacket is discounted by 20%. when it doesn't sell, it is discounted another 20%. what is the new price?

Question

zepdrix · Answer

Hmm if it is discounted 20%, that means the new price should be 80% of the original right? If that doesn't make sense, let me know :D

So let's multiply $60 by 80% to find the first discounted price.
Converting to a decimal we get,$$\large 60 \times 0.8$$What value do you get for the first discounting? :O

anonymous · Answer

chow did you get 80%?

zepdrix · Answer

The jacket originally costs 100% of it's price.
If we SUBTRACT 20% from that price, we are left with 80% right? :D
100% - 20% = 80%

You can do it the other way if you're more comfortable with it.
$$\large 60 \times 0.2$$Then subtract that value from 60.

anonymous · Answer

ok, so 60 x .8 = $48 which is the first discounted price

zepdrix · Answer

If the jacket doesn't sell, we discount it ANOTHER 20%.
So if we take 80% of this already discounted jacket, it will effectively discount it another 20%.

zepdrix · Answer

$$\large 48 \times 0.8$$

anonymous · Answer

= 38.40

zepdrix · Answer

Yess good good! :) $38.40

zepdrix · Answer

One of the things you might be asking yourself is, "Wait... if we took 20% off, and then 20% off again.. why didn't we just take 40% at the start?"

Ahh good question my fishy friend!
Because the 2nd time we took 20% off, we applied that discount to the previously discounted price. It's not the same as applying 20% and 20% to the original price.

anonymous · Answer

oh! i get it! taking 40% off would have given us an entirey different answer!

zepdrix · Answer

Yesss :D heh

anonymous · Answer

thnkz so much!