A retailer offers the following discount schemes for buyers on an item.
i) Two successive discount of 15%
ii) A discount of 20% followed by a discount of 10%
iii) A discount of 30%
Under which scheme the selling price will be maximum?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. i
i) Two successive discounts of 15%
ii) A discount of 20% followed by a discount of 10%
iii) A discount of 30%
Let the cost price of an item be Rs 100.
For i) -
SP after one discount of 15% = 100 - 15(100)/100 = Rs 85
SP of first complete discount = 85 - 15% of 85 = 85 - 15(85)/100 = Rs 72.25
For ii) -
SP after first discount = 100 - 20% of 100 = 100 - 20 = Rs 80
SP of second complete discount = 80 - 10% of 80 = 80 - 10(80)/100 = Rs 72
For iii) -
SP after a discount of 30% = 100 - 30% of 100 = 100 - 30 = Rs 70
Therefore, under the scheme i), the selling price is maximum.