Question 20

The clearance price of the sweater was 44 percent less than the retail price.

To determine the percentage by which the clearance price is less than the retail price, we calculate the sale price after a 20 percent discount off the retail price, followed by a 30 percent discount off the sale price. This results in a clearance price that is 44 percent less than the original retail price.

A) 40%

This option is incorrect because it underestimates the reduction from the retail price. A 20 percent discount on the retail price followed by a 30 percent discount on the sale price results in a greater overall reduction than 40 percent.

B) 44%

This option is correct as the final clearance price reflects a total reduction of 44 percent from the retail price. After calculating the sale and clearance prices, it becomes evident that this option accurately represents the percentage less than the retail price.

C) 50%

This option is incorrect because a 50 percent reduction would imply that the clearance price is half of the retail price, which does not align with the calculations. The actual percentage reduction is lower than this amount.

D) 56%

This option is also incorrect as it suggests an even larger reduction than what is calculated. The final clearance price does not represent a 56 percent decrease from the retail price, making this option invalid.

E) 0.6

This option is not applicable in this context as it does not provide a percentage reduction but rather a decimal, which is not relevant to the question regarding percentage decrease.

Conclusion

The correct answer, 44 percent, accurately represents the overall reduction of the clearance price compared to the retail price after applying both discounts. All other options fail to capture the correct calculations or assumptions regarding the discounts applied, confirming their incorrectness.