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A local RadioShack store wants to buy a new line of plasma TVs. Manufacturer A offers chain discounts of 18/12, and Manufacturer B offers terms of 17/13. Which single equivalent discount rate is the best deal?

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  1. 7 June, 01:12
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    Given that a local RadioShack store wants to buy a new line of plasma TVs. Manufacturer A offers chain discounts of 18/12, and Manufacturer B offers terms of 17/13.

    Let the list price of the plasma TVs be x, then after a chain discount of 18/12 by Manufacturer A, the selling price of the plasma TVs will be (1 - 0.18) (1 - 0.12) x = 0.82 (0.88) x = 0.7216x

    Also, after the discount of 17/13 by manufacturer B, the selling price of the plasma TVs will be (1 - 0.17) (1 - 0.13) x = 0.83 (0.87) x = 0.7221x

    Thus, the final selling price after discount by manufacturer A is 0.7216 and the final selling price after dscount by manufacturer B is 0.7221x.

    Therefore, Manufacturer A offers a single equivalent discount rate that is the best deal.
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