A tool designed for calculating the final price after three successive discounts are applied to an original price is essential for businesses and consumers alike. For instance, a product originally priced at $100 with discounts of 10%, 20%, and 30% applied sequentially would not result in a 60% discount. Instead, the first discount would reduce the price to $90, the second to $72, and the third to a final price of $50.40. This type of calculation requires a specific approach distinct from simply adding the discounts together.
This layered discounting approach plays a significant role in various promotional strategies, inventory clearance sales, and tiered pricing models. Understanding the final price after multiple discounts helps consumers make informed purchasing decisions and allows businesses to accurately predict revenue and manage profit margins. Historically, merchants and customers relied on manual calculations or slide rules to determine these final prices; the digital era has streamlined this process considerably.