You are at the store and the price of your goods costs 80
You have two coupons that you can use:
- $20 off the price of your goods
- 15 percent off the price of your goods
Which coupon yields the better value?
Calculate Dollar off Price denoted as Pd:
Pd = Price - Dollar off
Pd = $80.00 - $20.00
Pd = $60.00
Calculate Percentage off Price denoted as Pp:
| Discount Percentage = | 15 |
| 100 |
Discount Percentage = 0.15
Calculate Price Paid:
If the discount is x%, that means you pay for (1 - x)%
Pp = Price x (1 - Discount Percentage)
Pp = 80 x (1 - 0.15)
Pp = 80 x (0.85)
Pp = $68.00
Comparison Results:
In this case, the dollar discount of 20 is better than 15% off
Use the dollar coupon
Project the price where the percentage discount beats the dollar discount:
In other words, we need to know when 15% x Price ≥ 20
From above, 15% = 0.15
Divide each side of the equation by 0.15
| 0.15 x Price | |
| 0.15 |
| ≥ |
| 20 |
| 0.15 |
Cancelling 0.15 from the left side of the equation to solve for price, we get:
| Price = | 20 |
| 0.15 |
Projected Price ≥ $133.33
What is the Answer?
Projected Price ≥ $133.33
How does the Coupon Comparison Calculator work?
Free Coupon Comparison Calculator - Given a cost of goods, a dollar off coupon, and a percentage off coupon, this calculator will compare the two deals and determine which one is of more value. If the dollar coupon wins, the calculator will project the break even price where the dollar coupon would surpass the percentage coupon
This calculator has 3 inputs.
This calculator has 3 inputs.
What 1 formula is used for the Coupon Comparison Calculator?
Discount Price = Price x (1 - Discount Percentage)
What 5 concepts are covered in the Coupon Comparison Calculator?
- compare
- estimate, measure, or note the similarity or difference between
- coupon
- the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.
- discount
- the amount by which the market price of a bond is lower than its principal amount due at maturity
- dollar
- Currency unit
- percent
- a specified amount in or for every hundred. one part in every hundred.
n% = n/100
