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A product originally costs $125. If the product goes on sale for 20% off, and then goes on sale for an additional 30% off, what is the price of the product?

A $70

You need to apply the discounts successively not just add the discounts. So price after original 20% discount is $125 x 80% = $100. And $100 x 70% = $70 is the price after the 2nd 30% discount.