Knowbotic
PercentageStructured · 4 marks

During a clearance sale, a shop offered a storewide discount of 25% on all items. Priya used her loyalty card and received an additional 20% discount on the already discounted price. She paid $480 for a designer handbag.

  1. What was the original price of the handbag?
  2. What was the total amount of discount she received?
Need a hint?

Work out what percentage of the original price Priya actually paid after both discounts. Remember the second discount is on the reduced price, not the original price.

Worked answer

  1. (a) After the 25% discount, Priya pays 75% of the original price.
  2. (a) The 20% discount is on that price, so she pays 80% of 75% = 60% of the original price.
  3. (a) 60% of the original price = $480, so 1% = $480 ÷ 60 = $8.
  4. (a) Original price = $8 × 100 = $800.
  5. (b) Total discount = $800 − $480 = $320.
Answer: $320

The mistake this question tests

Habit

Percentage of a new total

Adding the two discount percentages (25% + 20% = 45%) and finding 45% of $480, which gives $216. This ignores that the second discount applies to the reduced price, not the original price.

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