Successive discounts of 20% and 10% are taken on an item priced at $16. Describe how to find the sale price of the item and give the sale price.

Answer:

First multiply the original price by 0.80 to apply the 20% discount: $16 × 0.80 = $12.80. Then multiply that reduced price by 0.90 to apply the 10% discount: $12.80 × 0.90 = $11.52. The sale price is $11.52.