Question
Download Solution PDFA customer could not decide between a discount of 40% or two successive discounts of 25% and 15% to buy a certain article. What is the difference between both the discounts?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
A customer is comparing a single discount of 40% with two successive discounts of 25% and 15%.
Formula used:
Single discount: D1 = 40%
Successive discounts: D2 = 25% and 15%
Effective Discount for successive discounts: Deff = D2a + D2b - (D2a × D2b)
Where, D2a = 25% and D2b = 15%
Calculation:
Effective discount for successive discounts:
Deff = 25% + 15% - (25% × 15%)
⇒ Deff = 0.25 + 0.15 - (0.25 × 0.15)
⇒ Deff = 0.25 + 0.15 - 0.0375
⇒ Deff = 0.3625 or 36.25%
Difference between the single discount and the effective successive discount:
Difference = 40% - 36.25%
⇒ Difference = 3.75%
∴ The correct answer is option (2).
Last updated on Jun 22, 2025
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