Kamlesh offers the following two discount schemes to his customers on the sale of an article:
(i) Two successive discounts of 25% and 5%
(ii) Two successive discount of 20% and 10%
What is the difference between the selling price (in Rs.) of the article under these two discount schemes if its marked price is Rs. 1,000?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 7.5.
Let the marked price of the article = 1000 Rs.
The effective price after the first discount of 25% = 1000 × (1 − 0.25) = 1000 × 0.75 = 750 Rs.
The price after the second discount of 5% = 750 × (1 − 0.05) = 750 × 0.95 = 712.50 Rs.
The effective price after the first discount of 20% = 1000 × (1 − 0.20) = 1000 × 0.80 = 800 Rs.
The price after the second discount of 10% = 800 × (1 − 0.10) = 800 × 0.90 = 720 Rs.
The difference between the selling prices under the two schemes = 720 − 712.50 = 7.50 Rs.