What is a single discount equivalent to the three successive discounts of 20%, 25% and 20%?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 52%.
Succesive discounts of 20% and 25% = 20 + 25 - (20 × 25)/100 = 20 + 25 - 5 = 40%
Succesive discounts of 40% and 20% = 40 + 20 - (40 × 20)/100 = 40 + 20 - 8 = 52%
Therefore, the single discount equivalent to the three successive discounts is 52%.