A single discount of 25% on the marked price of an item is equivalent to two successive discounts of 20% and x%. Find the value of x.
Show answer & explanation
Correct answer: B
Explanation
Given:
Single Discount = 25%
Successive Discounts = 20% and x%
According to the formula:
Equivalent Discount = a + b − (ab/100)
25 = 20 + x − (20x/100)
25 = 20 + x − 0.2x
25 = 20 + 0.8x
5 = 0.8x
x = 5 / 0.8
x = 6.25%