Multiple choice

Three successive discounts on the marked price of an article turns out to be equivalent to a single discount of 19%. If the rates of the first and second discount are 10% and 4% respectively, what is the rate of the third discount?

  1. $7.50%$
  2. $5.25%$
  3. $6.25%$
  4. $6.00%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For successive discounts, net discount = 1 - (1-d1)(1-d2)(1-d3). Substituting: 0.19 = 1 - (0.9)(0.96)(1-d3), so 0.19 = 1 - 0.864(1-d3), giving 0.864(1-d3) = 0.81, thus 1-d3 = 0.9375, meaning d3 = 0.0625 = 6.25%.

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