Ramesh was receiving two offers on a book with a marked price of ₹800. Either two successive discounts of 20% each, or two successive discounts of 30% and 10%. How much more must Ramesh have saved if he choose the superior scheme over the other ?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. ₹8.
Single discount on two successive discounts = x + y + xy/100
-20 -20 + 400/100 = -40 + 4 = -36%
Amount paid by Ramesh when he gets 36% discount = 800 × 64/100 = Rs.512
-30 - 10 + 300/100 = -40 + 3 = -37% [negative sign shows the discount]
Amount paid by Ramesh when he gets 37% discount = 800 × 63/100 = Rs.504
Thus Ramesh has to pay Rs.8 extra