What is the single discount equivalent to the three successive discount of 10%, 40% and 25%?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 1 i.e. 59.5%.
Net Discount = 100[1 − (1 − d1/100)(1 − d2/100)(1 − d3/100)]
=100[1 − (1 − 0.10)(1 − 0.40)(1 − 0.25)] = 100[1 − (0.90 × 0.60 × 0.75)]
⇒ 100[1 − 0.405] = 100 × 0.595 = 59.5%