Discussion Forum : True Discount
Question - A company offers three types of successive discounts : (i) 25% and 15%, (ii) 30% and 10%, (iii) 35% and 5%. Which offer is the best for a customer?
Options:
A .  Any one; all are equally good
B .  Third offer
C .  First offer
D .  Second offer
Answer: Option B
Answer: (b)Using Rule 5,(i) : Equivalent discount= $(25 + 15 - {25 × 15}/100)$%= (40 - 3.75) % = 36.25%(ii) : Equivalent discount= $(30 + 10 - {30 × 10}/100)$%= (40 - 3) % = 37%(iii) : Equivalent discount= $(35 + 5 - {35 × 5}/100)$%= (40 - 1.75) % = 38.25%Clearly, third offer is best for a customer

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