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%.