A store has clearance items that have been marked down by 40%. They are having a sale, advertising an additional 20% off clearance items. What per cent of the original price do you end up paying?

48%

Explanation:

With the first mark down of 40%, relative to the original price (P), the price has reduced to

P * (1-40%) = 0.6P.

With the additional 20% off the item, the price will therefore reduce to

0.6P * (1-20%)

=0.6P * 80%

= 0.48P = 48% of the Original Price.

Therefore, a customer will end up paying 48% of the Original Price.