Question

Two automobile dealers, A and B, had the same car which was listed at $18,000. Dealer A offered a
$1200 rebate and would negotiate a further 8% discount after rebate. Dealer B offered an 8% discount and
would negotiate a further $1200 rebate.
(a) Which dealer has the lowest price? _____________
(b) What is the lowest price? ______________

Answer 1

Dealer B has the lowest price $15,360.

The working:
Dealer A's Price:
After rebate price = List Price - $1,200 = 18,000 - 1,200 = $ 16,800.
8% discount * after rebate price = 8%*$16,800 = $1,344
Net price = $16,800 - $1,344 = $15,456

Dealer B's Price:
(100% List price - 8% of list price) - $1,200 =
(92% of list price) - $1,200 = (92%*18,000) - $1,200 = 16,560 - 1,200 = $15,360