Question

A. A CD is discounted by 10%, and then from the already discounted price, a further 15% discount is given. If the price now is $12.93, find the original price.

b. What is the total discount percent as compared to the original price?

Answer 1

a. $16.90

b. 23.5%

Explanation:

a. After the two discounts, the original price is multiplied by ...

(1 -10%)(1 -15%) = 0.90×0.85 = 0.765

Then the original price is found from ...

$12.93 = 0.765 × original price

original price = $12.93 / 0.765 ≈ $16.90

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b. The effective discount from the original price is ...

1 -0.765 = 0.235 = 23.5%