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 will the selling price be the maximum?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ( i )
According to the question
(i) Two successive discount of 15%
So, the net discount = 15 + 15 - 15 × 15/100 = 30 - 2.25 = 27.75 %
ii) A discount of 20% followed by a discount of 10%
So, the net discount = 20 + 10 - 20 × 10/100 = 30 - 2 = 28%
iii) A discount of 30%
Hence, The selling price will be the maximum under the scheme ( i )