Successive Discounts
Retailers often apply multiple discounts in a row, such as a promotional sale discount followed by a loyalty card discount. These are calculated step-by-step, not by simply adding the percentages together.
Fundamental Principles
Successive Deductions
A pricing system where a second discount percentage is applied directly to the lower price left after the first discount.
Single Equivalent Discount
A single overall discount percentage that matches the final price reduction of a series of separate discounts.
Essential Formulation Tips
- Never just add successive discounts together (for example, a 20% discount followed by a 10% discount is not a 30% discount).
- The order of the discounts does not matter; applying 20% then 10% gives the same final price as applying 10% then 20%.
Shortcut Execution Techniques
- For two successive discounts of x% and y%, use this formula to find the single equivalent discount: Total Discount = x + y - (x * y / 100).
Contextual Inquiries (FAQs)
Q: Why is the total discount lower than adding the percentages together?
A: Because the second discount is calculated from a smaller, already reduced price rather than the original starting price.
Example Breakdown: Finding a Single Equivalent Discount
Classic retail chain-reduction problem.Identify the two discount values: x = 20, y = 10.
Apply the shortcut equation: x + y - (x * y / 100).
Calculate the values: 20 + 10 - (20 * 10 / 100) = 30 - 2 = 28%.
Compounded Price Reductions
Practice working with consecutive percentage drops and compound pricing trends.
Q1. What single discount equals two consecutive store discounts of 30% and 10%?