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**HallsofIvy** You appear to be misunderstanding the words "a discount of 20 percent to 40 percent." That does NOT mean that you take discounts of both 20% and 40%. It means that the discount can be, I presume depending on the individual item, anywhere from 20% to 40%- it can be any percentage in that range. But since the problem asks about the "lowest possible price", we can assume the largest discount, 40%. The original price was $16 then the discount would be (0.40)(16)= $6.40 so price after that discount is 16- 6.40= $9.60 (we could also do this as (1- 0.4)(16)= (0.60)(16)= $9.60). The additional 25% reduction is, as Debsta said, 25% of that lower price: (0.25)(9.60)= $2.40. The final price would be 9.60- 2.40= $7.20. (Again, we could have calculated that price as (1- 0.25)(9.60)= (0.75)(9.60)= $7.20.