SOLUTION: the store marks item 10% up from the original price then puts it on sale 10% off what is the real percentage saved?

Question 710270: the store marks item 10% up from the original price then puts it on sale 10% off what is the real percentage saved?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Original Cost: x

Markup of 10%: x + 10% of x = x + 0.1x = 1.1x

Discount of 10%: 1.1x - 10% of 1.1x = 1.1x - 0.1*(1.1x) = 1.1x - 0.11x = 0.99x

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So to sum things up

If you have an item costing x dollars and you mark it up 10%, then it now costs 1.1x dollars. After you apply a 10% discount, the item is now worth 0.99x dollars

Difference in cost: Old - New = x - 0.99x = 0.01x

So the difference in cost is 0.01x which means that in the end, you're getting a 1% discount.

If you're not seeing why the answer is 1%, try plugging in some values of x (like x = 100) and compute 1.1x and 0.99x. Then compare it with just adding a markup of 10% on a $100 item, then applying a 10% discount. You should get the same answer.

Then try it with other original dollar amounts to further confirm the answer.
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