A fierce price war has broken-out over gas. Super-Save offered pre-price war gas at 73.9 cents per litre with 5% Super-Save discount. Cooperative gas was 75.9 cents per litre and they offered a 3%, 10% discount. What additional discount must Super-Save offer to beat their competitor's price by 2%?

Question

Quizplus · Accepted Answer

Super-Save's discounted price is 73.9 * 0.95 = 70.205 cents. Cooperative's final price after both discounts is 75.9 * 0.97 * 0.9 = 66.2823 cents. To beat Cooperative's price by 2%, Super-Save needs to offer their gas at 66.2823 * 0.98 = 64.95666 cents. The additional discount required is (70.205 - 64.95666) / 70.205 = 0.07506 or 7.506%.

A Fierce Price War Has Broken-Out Over Gas