Answer to Question #97926 in Financial Math for Hafsa

Question

In a shop, all prices are reduced by 20% to give the sale price. The sale price of a TV set is then reduced by 30%.

Mary says,

“30+20=50, so this means the normal price of the TV set is then reduced by 50%”

Is Mary right? You must give a reason for your answer.

Answer 1

If all prices are reduced by 20% to give the sale price, and the sale price of a TV set is then reduced by 30%, then the final price is (1 - 0.2)×(1 - 0.3) = 0.56 or 56% of the normal price, or the price is reduced by 100% - 56% = 44%.

Thus, Mary is not right.