Question

Let S1 be the amount allowing 10% discount on the price of some goods and then adding 10% VAT. Let S2 be the amount adding 10% VAT and then allowing 10% discount. Which of the following is true? (i) S1 > S2 (ii) S1 < S2 (iii) S1 = S2 (iv) Cant be decided

Answer 1

Using decimal multipliers, the correct statement is given by:

(iii) S1 = S2.

What is a decimal multiplier?

Increases of a% or decreases of a% re represented by decimal values, as follows:

• The equivalent multiplier for an increase of a% is given by: $\frac{100 + a}{100}$

• The equivalent multiplier for an decrease of a% is given by: $\frac{100 - a}{100}$

Hence, in the context of this problem:

• An increase of 10% is represented by 1.1.

• A decrease of 10% is represented by 0.9.

The options are given as follows:

• S1 = 0.9 x 1.1 = 0.99.

• S2 = 1.1 x 0.9 = 0.99.

They are equal, hence option (iii) is correct.

More can be learned about decimal multipliers at https://brainly.com/question/19808269

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