Find the single discount rate percentage equivalent to the successive discounts of 10%, 20% and 20%.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 42.4%.
SUccessive discount of two discount = x + y + xy/100
here, x = -10, y = -20
⇒ -10 - 20 + 200/100
⇒ -30 + 2 = -28%
Now,
x = -28, y = -20
⇒ -28 - 20 + 560/100
⇒ -48 + 5.6 = 42.4%
Thus, the single discount rate percentage equivalent to the successive discounts of 10%, 20%, and 20% is 42.4%