A store offers three successive discounts of 20%, 10%, and 5% on a shirt. What is the single equivalent discount?
Show answer & explanation
Correct answer: B
Explanation
Given:
Discount₁ = 20%
Discount₂ = 10%
Discount₃ = 5%
According to the formula:
Equivalent Discount = 1 − (1 − d₁)(1 − d₂)(1 − d₃)
= 1 − (0.80 × 0.90 × 0.95)
= 1 − 0.684
= 0.316
= 31.6%