A single discount equivalent to three successive discounts of 10%, 12% and 15% is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 32.68%.
Net discount = 1 - (1 - D1)(1 - D2)(1 - D3)
⇒ 1 - (1 - 0.10)(1 - 0.12)(1 - 0.15)
⇒ 1 - 0.90 × 0.88 × 0.85
⇒ 1 - 0.6732 = 0.3268 or 32.68%