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Lesson · Mathematics

Why a bigger discount can cost more

One shop offers forty percent off and another thirty, yet the thirty percent shop costs less.

A percentage discount is taken from the marked amount, so a bigger discount on a higher marked amount can still leave you paying more. Work out the amount to pay for each offer, then compare.

This lesson closes the series rates and percentages in multistep consumer questions. All shops here are invented.

How do I compare two offers?

Follow these steps for each offer.

  1. Write the marked amount.
  2. Amount to pay = marked amount × (1 − discount as a decimal).
  3. Compare the amounts to pay, not the percentages.

Worked example 1: two shops

Shop A sells a bag marked at RM200 with 30% off. Shop B sells a similar bag marked at RM250 with 40% off.

Shop A: 200 × 0.7 = RM140. Shop B: 250 × 0.6 = RM150.

Shop B has the larger discount, 40% against 30%, but the amount to pay is RM10 higher. The 40% was taken from a larger starting amount.

Worked example 2: one discount against two

A shirt is marked at RM400. Offer 1 is a single 40% discount. Offer 2 is 30% off, and then a further 10% off.

Offer 1: 400 × 0.6 = RM240.

Offer 2: 400 × 0.7 = 280, and 280 × 0.9 = RM252.

Offer 2 leaves RM12 more to pay. Its combined multiplier is 0.63, so the reduction is 37%, not 40%.

The mistake of trusting the headline percentage

A common slip is to pick Shop B because 40% sounds stronger. A percentage only means something when you know what it is taken from.

Fix this with one line of working per offer: marked amount, multiplier, amount to pay. Write the three numbers before you choose.

Check yourself

Item P is marked at RM150 with 40% off. Item Q is marked at RM110 with 20% off. Which leaves the smaller amount to pay?

Answer

Item P: 150 × 0.6 = RM90.

Item Q: 110 × 0.8 = RM88.

Item Q leaves RM2 less to pay, even though its discount is only 20%.

What to study next

Test the whole series in the integrated practice set. You can also revisit recovering an original amount after successive changes.

If you want a teacher to go through your comparisons, see online one-to-one Mathematics tuition.

Common questions

Why can 40% off be worse than 30% off?

A percentage is taken from a base. If the 40% is taken from a higher marked amount, the amount to pay can still be larger. Compare the amounts paid, not the percentages.

Do two successive discounts add?

No. A 30% discount then a 10% discount gives 0.7 × 0.9 = 0.63, so the total reduction is 37%, not 40%.

What should I compare when choosing between offers?

Compare the final amount each offer asks you to pay, including extra items such as delivery if the question includes them. Use the same item in every comparison.

Are the shops in this lesson real?

No. They are invented for practice. Real offers change and include terms that a question would need to state.

If discount comparisons keep pointing to the wrong shop, one-to-one Mathematics lessons let a teacher train the habit of calculating the amount to pay before judging the percentage.

  • Online one-to-one lessons for your child with an experienced teacher.
  • Your first class is a one-hour trial, from RM50. The fee is agreed before you book.
  • Happy with the teacher? Continue with lessons of about 1.5 hours. If not, ask for another teacher.