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Activity Problem: In a warehouse you obtain 20\% discount but you must pay a 15...

Sep 29, 2024

Solution by Steps

step 1

To determine whether to calculate the discount or tax first, we need to understand how each affects the final price. Let's denote the original price as

P

step 2

If we calculate the discount first, the price after the discount is

P - 0.2P = 0.8P

. Then, applying the sales tax, the final price becomes

0.8P + 0.15(0.8P) = 0.8P(1 + 0.15) = 0.8P \times 1.15 = 0.92P

step 3

If we calculate the tax first, the price after tax is

P + 0.15P = 1.15P

. Then, applying the discount, the final price becomes

1.15P - 0.2(1.15P) = 1.15P(1 - 0.2) = 1.15P \times 0.8 = 0.92P

step 4

In both cases, the final price is

0.92P

. Therefore, it does not matter which is calculated first; the final price remains the same

Answer

It does not matter whether you calculate the discount or tax first; the final price will be the same.

Key Concept

Order of operations in percentage calculations can affect the final amount, but in this case, both methods yield the same result.

Explanation

Regardless of whether the discount or tax is applied first, the final price remains consistent at 92% of the original price.