Question

1. madya and ainsley are shopping for laptops. they find the same computer in two different stores with different sales promotions.

• madya’s deal: retail price $725 plus gst (5%). after madya pays for the computer she scans her receipt and gets an instant rebate of $200.
• ainsley’s deal: retail price $675 on sale 20% off. after the discount ainsley still needs to pay the gst (5%).

determine who got the better deal.

Explanation:

Step1: Calculate Madya's total cost

First, calculate the price with GST: $725 + 5\%$ of $725$. The formula for GST is $725\times(1 + 0.05)$. Then subtract the rebate of $200$.
$725\times1.05 = 761.25$
$761.25 - 200 = 561.25$

Step2: Calculate Ainsley's total cost

First, calculate the sale price: $675 - 20\%$ of $675$, which is $675\times(1 - 0.2)$. Then add 5% GST to that price: $675\times0.8\times1.05$.
$675\times0.8 = 540$
$540\times1.05 = 567$

Step3: Compare the two costs

Madya's cost is $561.25$, Ainsley's cost is $567$. Since $561.25 < 567$, Madya has a lower cost.

Answer:

Madya got the better deal.