Question

What is the discount percentage equivalent to three successive discounts of 20%, 5% and 30%?
1. 48.4%
2. 46.8%
3. 54.2%
4. 44.5%

Answer 1

Correct Answer - Option 2 : 46.8%

GIVEN:

Three successive discounts of 20%, 5% and 30%

CONCEPT:
Basic concept of discount.

FORMULA USED:

Cumulative discount for x% and y% = x + y – xy/100

CALCULATION:

Cumulative discount for 20% and 5%

= 20 + 5 – (20 × 5)/100

= 25 – 1

= 24%

Now

Cumulative discount for 24% and 30%

= 24 + 30 – (24 × 30)/100

= 54 – 720/100

= 54 – 7.2

= 46.8%