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Homework answers / question archive / The price for a bike after two successive discounts of 32% and 18% is $97

The price for a bike after two successive discounts of 32% and 18% is $97

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The price for a bike after two successive discounts of 32% and 18% is $97.58. 
1. What is the single equivalent rate of discount?1 
2. What is the price of the bike before the two discounts? 
Price = 

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1) Computation of Single Equivalent Rate of Discount:

Single Equivalent Rate of Discount = 1 - (1-D1%) * (1-D2%)

= 1 - [(1- 32%) * (1-18%)]

= 1 - [(0.68) * (0.82)]

= 1 - 55.76%

Single Equivalent Rate of Discount = 0.4424 i.e 44.24%

 

2) Computation of Price of Bike after two discounts:

Price of Bike after two discounts = Final Price after two discounts / (1-Single equivalent rate of discount)

= $97.58 / (1-44.24%)

= $97.58 / 0.5576

Price of Bike after two discounts = $175