A trader offers the following discount schemes on the purchase of a refrigerator.
( I ) a discount of 10% followed by a discount of 8%
( ii ) successive discounts of 12% and 10%
( iii ) two successive discounts of 12%
( iv ) a discount of 20% In which scheme is the selling price the lowest?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. (iii)
Let the marked price of the refrigerator = ₹100
Scheme (I): 10% followed by 8%
First discount: 10% of ₹100 → ₹10
New price = ₹100 - ₹10 = ₹90
Second discount: 8% of ₹90 → ₹7.20
Final price = ₹90 - ₹7.20 = ₹82.80
Scheme (II): 12% followed by 10%
First discount: 12% of ₹100 → ₹12
New price = ₹100 - ₹12 = ₹88
Second discount: 10% of ₹88 → ₹8.80
Final price = ₹88 - ₹8.80 = ₹79.20
Scheme (IV): Flat 20% discount
Discount: 20% of ₹100 → ₹20
Final price = ₹100 - ₹20 = ₹80
Thus, the lowest selling price is in Scheme (III): Two successive 12% discounts