A shopkeeper normally allows a discount of 10% on the marked price of each article. During a sale season, he decides to give two more discounts, the first being at a rate of 50% of the original and the second at a rate of 40% of the first. What is the percentage rate of the equivalent single discount (correct up to two decimal places)?
Show answer & explanation
Correct answer: D
Explanation
Correct Answer is option 4 i.e. 17
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Concept |
Understanding |
Application |
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Discount |
Let the marked price of the article be Rs. 100.
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Value of 10% discount = 100 × (10/100) = Rs. 10 Selling price after 10% discount = 100 - 10 = Rs. 90 First discount given during sale season = 10 × (50/100) = Rs. 5 Selling price after 1st discount given during sale season = 90 – 5 = Rs. 85 Value of 2nd discount given during sale season = 5 × (40/100) = 2 Selling price after 2nd discount given during sale season = 85 – 2 = 83 Single equivalent discount = 100 - 83 = 17 Percentage rate of equivalent single discount = (17/100) × 100 = 17%
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