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2.6. Successive Discounts
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Good morning, everyone! Today, we're diving into the world of successive discounts—an essential concept in commercial math!
What exactly is a successive discount?
Great question! Successive discounts mean applying one discount after another on an item. For example, if a shirt costs $100 and has a 10% discount followed by another 20%, we apply the second discount on the price after the first discount.
So how do we calculate the selling price with multiple discounts?
We use the formula S.P. = M.P. × (1 - d1/100) × (1 - d2/100). Here, M.P. is the marked price and d1 and d2 are the discount percentages.
Could we do an example together?
Absolutely! Let's say an item has a marked price of $200, and there are discounts of 15% and 25%. The selling price will be calculated as follows: S.P. = 200 × (1 - 0.15) × (1 - 0.25).
I see how that works!
To summarize, successive discounts are calculated on an adjusted price, leading to a lower final price than expected if a single discount were applied. Keep practicing using the formula!
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Let's practice! If a television has a marked price of $450 with discounts of 10% and 5%, how would you find the selling price?
First, we calculate 10% off, which gives us 45, leaving $405.
Then we take 5% off of 20.25, right?
Correct! So what’s the final selling price?
It’s 20.25, equaling $384.75!
Well done! Remember, understanding successive discounts helps in real-life situations, like shopping!
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Create a free accountNow, let’s talk about where we see successive discounts in real life. Can anyone give an example?
How about during holiday sales or clearance events?
Exactly! Retailers often advertise multiple discounts to encourage purchase. Knowing how to compute these helps consumers get the best deals.
I think I understand it better now!
Let’s summarize today's lesson: Successive discounts are sequential discounts applied to already discounted prices, often used in sales promotions.
Overview
Short Summary
Successive discounts involve applying multiple discounts sequentially to a marked price, leading to a modified selling price.
Medium Summary
When more than one discount is offered on a product, successive discounts are calculated by applying each discount on the reduced price sequentially. This method affects the final selling price, which is derived from the marked price using a specific formula.
Detailed Summary
Detailed Summary of Successive Discounts
Successive discounts occur when an item has multiple discounts applied consecutively rather than a single discount. This is commonplace in retail and sales promotions. The final selling price is calculated using the formula:
S.P. = M.P. × (1 - d1/100) × (1 - d2/100)
where M.P. is the marked price, and d1 and d2 are the successive discount percentages expressed in decimal form. This method ensures that subsequent discounts are calculated on the already discounted price, leading to a compounded effect that significantly alters the final selling price. Understanding how to compute successive discounts is essential for accurate pricing in commercial settings.
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Audio Book
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Create a free accountWhen more than one discount is offered, each is applied on the reduced price.
Detailed Explanation
Successive discounts are discounts that are applied in sequence, meaning each discount is calculated on the price after the previous discount has been applied. For example, if an item has a marked price of $100 and you receive a 10% discount followed by another 20% discount, the second discount is applied to the new price after the first discount is taken into account, rather than the original price.
Examples & Analogies
Imagine you're buying a video game that's originally priced at 36. Then, applying the second discount, you would pay 25% of 9 less, making the final price $27.
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Create a free accountNet Selling Price is calculated as: S.P. = M.P. × (1−d1/100) × (1−d2/100)
Detailed Explanation
The net selling price (S.P.) after applying successive discounts can be calculated using a specific formula. Here, M.P. stands for the marked price of the item, and d1 and d2 represent the first and second discount percentages, respectively. To find the net selling price, you first subtract the first discount percentage from 100%, multiply this decimal result by the marked price, and then take that new result and apply the second discount percentage using the same method.
Examples & Analogies
Let's say you have a shirt marked at 50, which is 45. Next, take 5% of 2.25. The final selling price will be 5 - 42.75.
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Key Concepts
Core takeaways and short definitions to help you quickly recall the key ideas from this section.
Successive Discounts: Applying multiple discounts one after another to a product's price.
Marked Price (M.P.): The initial price before discounts are applied.
Selling Price (S.P.): The final price after all discounts have been taken into account.
Examples
Memory Aids
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