Trader A offers a discount of 25% on the marked price for cash purchase. Trader B offers a trade discount of 20% and a cash discount of 5% on the same article marked at the same price as that of Trader A. As a buyer whom should I buy from if I am to pay cash?

Question: Trader A offers a discount of 25% on the marked price for cash purchase. Trader B offers a trade discount of 20% and a cash discount of 5% on the same article marked at the same price as that of Trader A. As a buyer whom should I buy from if I am to pay cash?

Solution:
Trader A:
If the marked price = 100
then the net price to the buyer = 0.75 × 100 = 75.

Trader B:
If the marked price = 100,
then the price after 1st discount = 0.8 × 100 = 80 and
the cash price = 0.95 × 80 = 0.76

Since the discount is higher or the price to me as a buyer is lower with Trader A, I should choose to buy from Trader A.