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A company offers 3 types of successive discounts : (i) 25% and 15%, (ii) 30% and 10%, (iii) 35% and 5%. Which offer is the best for a customer?
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- First offer
- Second offer
- Third offer
- Any one; all are equally good
Correct Option: C
Use the below formula to calculate the Equivalent discount.
| Successive discounts of D1 % and D2 % is overall equals to = |  | D1 + D2 − |  | % | |
| 100 |
Where D1 = Discount 1 and D2 = Discount 2
(i) : Equivalent discount
| = | | 25 + 15 − | | % | |
| 100 |
= (40 – 3.75) % = 36.25%
(ii) : Equivalent discount
| = | | 30 + 10 − | | % | |
| 100 |
= (40 – 3) % = 37%
(iii) : Equivalent discount
| = | | 35 + 5 − | | % | |
| 100 |
= (40 – 1.75) % = 38.25%
Clearly, third offer is best for a customer.
