Determine what they are trying to ask, and what you will need to solve it
Eliminate any non-essential information
Draw a picture, graph, or equation
In moments of high stress like exam taking, always work with the paper they give you to avoid careless mistakes.
Solve.
To solve this question, it is important to consider the order. First, we need to calculate the price of the packet minus the €0.20 discount, then since we know that you are spending €10.00, it means you qualify for the 10% discount on top of that reduced price. So let’s solve:
Calculate the cost per pack after the €0.20 discount
€1.60 - €0.20 = €1.40
Calculate 10% of €1.40
(€1.40)(0.10) = €0.14
Find the final price of the pack
€1.40 - €0.14 = €1.26
\fcolorbox{red}{grey!30}{Therefore the answer is A, $€1.26$}