A 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?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 3.75%.
Single discount = 40%
Successive discounts = 25%, then 15%
Effective successive discount = 25 + 15 − (25 × 15) / 100 = 36.25%
Difference = 40 − 36.25 = 3.75%