Question

Successive discounts of 20%, 15% and 10% are provided on a good. The equivalent single discount provided should be equal to _________

1. 30.9%
2. 38.8%
3. 36.4%
4. 40.0%

Answer 1

Correct Answer - Option 2 : 38.8%

Given:

Successive discounts of 20%, 15% and 10% are provided on a good.

Concepts used:

M.P. = S.P. + Discount

Discount % = Discount/M.P. × 100

Calculation:

Let M.P. be Rs. x.

⇒ First discount = x × 20% = x/5

⇒ Successive discount = (x – x/5) × 15% = 3x/25

⇒ Second successive discount = (4x/5 – 3x/25) × 10% = 17x/250

⇒ Equivalent single discount = (x/5) + (3x/25) + (17x/250) = 97x/250

⇒ Single discount % = 97x/250/x × 100 = 38.8%

∴ Equivalent single discount is equal to 38.8%.