Applied to a bill for ₹1000, what is the difference between a discount of 40% and two successive discounts of 36% and 4%?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e ₹14.40.
A 40% discount on ₹1000 = 1000 × 0.40 = 400
Remaining amount = 1000 - 400 = 600
Two successive discounts of 36% and 4%
The first discount of 36% = 1000 × 0.36 = 360
Remaining amount = 1000 - 360 = 640
A second discount of 4% on the remaining amount (₹640)
⇒ 640 - 25.6 = 614.4
The final amount after a single 40% discount is ₹600, and after two successive discounts of 36% and 4%, it is ₹614.4.
Difference = 614.4 - 600 = 14.40
So, the difference between the two discount methods is ₹14.4