Question

$3.00. Boxes of SHABLAM! cereal originally cost The store has reduced the price by 25%. You have a coupon for an additional 20% off the already discounted price. What is the final price of the cereal?

Answer 1

the answer is 1.80 because

0.25 times 3.00 is 0.75 
minus 0.75 to 3.00 and it will be 2.25
0.20 times 2.25 will be 0.45
minus 0.45 to 2.25 
and u will get 1.80

Answer 2

A discount of 25% means you're paying (100% -25%) = 75% of the original price. An additional discount of 20% means you're paying (100% -20%) = 80% of the discounted price. In the end, you're paying
  $3.00*75%*80% = $1.80

The final price of the cereal is $1.80.