Question

An electronics superstore normally sells a new smartphone for $200, but it is currently offering a 50% discount off the price. The same phone is available online for $200; the website is offering 25% off the phone, plus another 25% discount off all purchases. Where should you buy the phone to get the better deal? Why?

Answer 1

At the superstore, the reduced price is $100. At the website, the 25% discount on the first reduced price of $150 is $37.50. At the website, the sale price is $112.50. The superstore has the better price.

Answer 2

You should buy the phone with the 50% discount.

If you buy this phone, the cost will be $100.  If you buy it through the website, you would first take 25% off:

200-(0.25*200) = 150

Then you take another 25% off:
150 - (0.25*150) = 112.50.

It is cheaper to take the 50% discount.