Multiple choice

The marked price of an article is Rs. 20,000. If the first shopkeeper gives successive discounts of 20%, 20% and 10%, and the second shopkeeper gives successive discounts of 20%, 16% and 14%, then which of the following is correct?

  1. First shopkeeper gives a better offer.

  2. Second shopkeeper gives a better offer.

  3. Both of them give the same offer.

  4. SP of both the shopkeepers is the same.

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Shop 1: (1-0.2)(1-0.2)(1-0.1) = 0.8*0.8*0.9 = 0.576 (42.4% discount). Shop 2: (1-0.2)(1-0.16)(1-0.14) = 0.8*0.84*0.86 = 0.57792 (42.208% discount). Shop 1 gives a larger discount.

AI explanation

Using the equivalent discount formula for successive discounts, 1 - (1-d1)(1-d2)(1-d3), the first shopkeeper's single discount is 1 - (0.8*0.8*0.9) = 42.4%. The second shopkeeper's single discount is 1 - (0.8*0.84*0.86) = 42.2%. A larger discount percentage gives a better offer to the customer, so the first shopkeeper gives a better offer.

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