Puzzle 116 - Solution
- When the dealer gives you a discount of 15%, amount will be x (1-0.15) = 0.85x
- Then when he takes a commission of 10%, his commission will be 0.085x
- The final amount you will pay is 0.85x + 0.085x = 0.935x
- When the dealer first takes a commission of 10%, amount will be 1.1x
- When he gives a discount, discount amount will be 1.1*0.15x = 0.165x
- The final amount you pay will be 1.1x - 0.165x = 0.935x
For you, both the options are equal.
For the dealer -
- If he takes a commission after discount, his commission will be 0.085x = 8.5%
- If he takes commission before discount, his commission will be 10%
So for the dealer second option is more profitable.
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