Tip:
Highlight text to annotate it
X
Hi, I'm Tricia, and I'm here today to make you a better shopper.
We've all seen these ads -- we've gotten them in the mail.
We have an original price of an item of $44. And, as you can read, there is a 25% mark
down and then an additional 50%.
So in my head, I think I'm saving 75%. But in reality, we're not, and I'm going to show
you why.
If we were saving the 75% right away of off our $44, our total price of item would be
$11.
But clearly, we can see it's $16.49. Why the difference?
The reason -- order of operations. And this is a quick break down of how it works.
We have our original price of $44. We have to take the 25% off first, and when we do
that we get an original price -- or a sale price, excuse me -- of $32.99. That's with
our first 25% off.
Then we'll take an additional 50% off of our sale price. When we do that, we are left with
$16.49.
Clearly, we can see that's a very big difference from thinking we're saving 75% off the original
item.
So next time when you go to the store, you'll be better informed.
Thank you.