Question

Dante has been shopping for a new bike. He found two bikes that he likes equally-one is sold at Mike's Bikes for $300, and the other is sold at Cycle Center for $275.
Dante has a coupon for 25% off any bike at Mike's Bikes. However, the manufacturer of the bike at Cycle Center has included a $40 rebate after the purchase of the bike.

Where should Dante purchase his mountain bike?
(I would appreciate if you show your work)

Answer 1

Hello there! So, let's do this a bit at a time. Mike's Bikes sells a bike for $300, but gives a 25% discount for any bike in the store. To find out how much he would pay for the bike, multiply 300 by 75% (0.75). This is because you are still paying 75% of the original price for that bike. When you do, you get 225. That's $225 for the bike at Mike's Bikes. Now, the one at Cycle Center sells a bike for $275, but gives a rebate of $40 after purchasing the bike. A rebate is basically a refund: you get money paid back to you. In this case, we would subtract 40 from 275, because you're basically getting paid back some of what you did pay. 275 - 40 is 235. That's $235 for the bike at Cycle Center. I'll write the prices of the bikes out to make it easier to read.

Mike's Bikes: $225
Cycle Center: $235

Okay. so when you look at the prices for the mountain bikes, you see that the bike at Mike's Bikes is $10 cheaper than the bike at Cycle Center. Dante should purchase his mountain bike at Mike's Bikes, because he will pay less money there. The Cycle Center does give $40 back, but Mike's Bikes has the bike that costs less. 225 < 235.