Which is the better choice if a company owes you 17 dollars and you want to buy a 40 dollar lamp?

Question

An online company charges you the wrong amount on an item and owes you 17 dollars. You want to buy a 40 dollar lamp from the same company.

You are given 3 options: 1) You can keep the 17 dollar difference. 2) Give you a 60% discount on the 40 dollar lamp WITHOUT the 17 given back. 3) Give you 2 lamps for 40 dollars.

EDIT: Your son would like a desk lamp as well.

Thought process:

A 60% discount on the 40 dollar lamp would bring it down to 16 dollars, that I would pay (23.99 would be 60% of 40 dollars). I am a little stumped here because what I am thinking is that I would really only be paying 33 dollars total (16 dollars from what I would pay + 17 dollars that they wouldn't give back). If the 33 dollars is correct, the best option would be to buy 2 for 40 dollars.

Which option would be the best choice?

Answer 1

You need a lamp and are willing to pay $ 40 for the lamp you have seen in the catalogue. You order it and pay for it.

Independently of this you may select between three goodies:

1. $ \$\ 17$ in cash,
2. $ \$\ 24$ cashback on the lamp,
3. a second lamp for free.

Therefore you have to make up your mind between 2. and 3. The decision depends on wether you have some use for the second lamp.

Answer 2

From what I see.

1. you get your money back, a \$0 gain

2. you would advantage \$24 so you are at a \$7 gain

3. you effectively gained \$40 so you are at a $23 gain

but the problem here is, do you even want a second lamp?

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Update: Your son wants a lamp so you are getting the most effective bargain with choice #3.