A shopkeeper provides two consecutive discounts of 20% and 10% on an item. Calculate the single discount rate that is equivalent to these successive discounts.
Show answer & explanation
Correct answer: A
Explanation
Given:
First discount = 20%
Second discount = 10%
Formula:
Equivalent single discount = a + b − (ab / 100)
= 20 + 10 − (20 × 10 / 100) = 28%