Question

Employees of a discount appliance store receive an additional 20% off of the lowest price on an item. If an employee purchases a dishwasher during a 15% off sale, how much will he pay if the dishwasher originally cost $450?

• A. $280.90
• B. $287.00
• C. $292.50
• D. $306.00
• E. $333.89

Hint:

Remember that applying a 15% discount and then a 20% discount is not the same as a 35% discount. Successive discounts are applied to the new, reduced price at each step.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
This problem involves applying successive percentage discounts. The discounts are applied one after the other, not added together.
Step 2: Key Formula or Approach:
To calculate a price after a discount, use the formula: \[ \text{Final Price} = \text{Original Price} \times (1 - \text{Discount Rate}) \] We will apply this formula twice.
Step 3: Detailed Explanation:
First, calculate the sale price after the 15% discount. This will be the "lowest price".
Original Price = $450.
Discount Rate = 15% = 0.15.
\[ \text{Sale Price} = \$450 \times (1 - 0.15) = \$450 \times 0.85 = \$382.50 \] Next, the employee gets an additional 20% off this sale price.
New Price = $382.50.
Employee Discount Rate = 20% = 0.20.
\[ \text{Employee Price} = \$382.50 \times (1 - 0.20) = \$382.50 \times 0.80 = \$306.00 \] Step 4: Final Answer:
The employee will pay $306.00 for the dishwasher. The correct option is (D).