Find a single discount equivalent to the successive discounts of 12%, 20%, 24%, and 32%. (Correct to two places of decimals)
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 63.62%.
Single discount = 100 × [1 - (1 - d1)(1 - d2)(1 - d3)(1 - d4)]
⇒ 100 × [1 - (1 - 0.12)(1 - 0.20)(1 - 0.24)(1 -0.32)]
⇒ 100 × [1 - 0.88 × 0.80 × 0.76 × 0.68]
⇒ 100 × [1 - 0.3638]
⇒ 100 × 0.6362 = 63.62%