On Fri, 14 Dec 2001, Wuensch, Karl L wrote:
> I came across a table of costume jewelry at a department store with a
> sign that said "150% off. " I asked them how much they would pay me to
> take it all off of their hands. I had to explain to them what 150%
> meant, and they then explained to me how percentages are computed in
> the retail trade: first we cut the price in half (50%). Then we cut
> it in half again. Now we have cut it in half a third time.
> 50% + 50% + 50% = 150% off.
Interesting. Not altogether surprising, though. In a conversation with a
local bank mortgage person, I explained that part of my income is in
Canadian funds, deposited into my bank in Toronto, and the current
exchange rate is (approximately) 1.50 (Canadian $ for each US $). She
then wanted to calculate the equivalent US income by discounting the
Canadian value by 50%. I pointed out that this was incorrect: one would
discount the Canadian value by 33%. She said "I hear what you're saying",
but went on to indicate that it somehow wasn't relevant. I could not tell
whether (a) she didn't believe me, (b) she didn't know how to deal with
the arithmetic of exchange rates, (c) "this is the way we do it here", (d)
something else, or (e) a combination of the above. Whatever the case, I
decided it would be the better part of valor to deal with another bank.
But back to your retail trade: if they advertise a 150% discount
directly, without referring to the sequence of three 50% discounts, might
they not be liable to legal action for misrepresentation?
-- DFB.
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Donald F. Burrill [EMAIL PROTECTED]
184 Nashua Road, Bedford, NH 03110 603-471-7128
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