A customer wanted to purchase an item marked for Rs10000. Shopkeeper offered two types of discounts, 25% flat
discount or successive discounts of 14 % and 12%. Which is the better offer for the customer and by how much?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. first offer by Rs68
MP = Rs 10000.
Discount = 10000 × 25/100 = 2500.
Successive discount of 14% and 12%.
= -14 - 12 + [(-14) × (-12)]/100
= -26 + 1.68 = -24.32%.
24.32% of 10000 = 2432.
Hence one can say that the first offer is beneficial for customers by Rs 68.