Multiple choice

If the marked price of an item is Rs. 2,000 and a shopkeeper is giving different successive discounts to customers to buy that item, then which of the followings should be preferred by the customers? (i) 30% and 30% (ii) 20% and 40% (iii) 50% and 10% (iv) 25% and 35%

  1. (i)

  2. (ii)

  3. (iii)

  4. (iv)

  5. (i) and (ii)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Successive discounts of a% and b% result in a total discount of (a + b - ab/100)%. (i) 30+30-9 = 51%. (ii) 20+40-8 = 52%. (iii) 50+10-5 = 55%. (iv) 25+35-8.75 = 51.25%. The highest discount is best for the customer.

AI explanation

Customers prefer the scheme with the highest equivalent successive discount, which occurs when the individual discount percentages are furthest apart. The discount schemes (i) and (iv) have a difference of 0% and 10%, respectively, while scheme (iii) has the largest difference of 40%. Using the equivalent discount formula, option (iii) of 50% and 10% gives the highest discount, resulting in a final price of 2000 * 0.50 * 0.90 = 900.

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