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An article is listed at ₹ 900 and two successive discounts of 8% and 8% are given on it. How much would the seller gain or lose, if he gives a single discount of 16%, instead of two discounts ?
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- Gain of ₹ 4.76
- Loss of ₹ 5.76
- Gain of ₹ 5.76
- Loss of ₹ 4.76
Correct Option: B
As we know the formula for a equivalent discount for two successive discount.
Equivalent discount for two successive discounts of 8% and 8%
| = |  | 8 + 8 − |  | % | |
| 100 |
= (16–0.64) % = 15.36 %
∴ SP = (100 –15.36) % of 900
| = ₹ | | | = ₹ 761.76 | |
| 100 |
For a single discount of 16%,
SP = 84% of 900
| = ₹ | | | = ₹ 756 | |
| 100 |
Certainly seller will lose in this case.
∴ Loss = ₹ (761.76 – 756)
= ₹ 5.76
