A shopkeeper offers the following discount schemes for buyers in an article:
i. Two successive discounts of 15% each
ii. A discount of 25% followed by a discount of 5%
iii.Two successive discounts of 20% and 10%
iv. A discount of 30%
Under which scheme will the selling price be maximum?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Scheme i.
Single discount of two successive discounts = x + y - xy/100
i. Single discount of two successive discounts = 15 + 15 - 225/100 = 30 - 2.25 = 27.75%
ii. Single discount of two successive discounts = 25 + 5 - 125/100 = 30 - 1.25 = 28.5%
iii. Single discount of two successive discounts = 20 + 10 - 200/100 = 30 - 2 = 28%
iv. Disacount = 30%
The minimum discount is in Scheme i so, the selling price will be the maximum in Scheme I.