Which of the following schemes will yield maximum discount on purchase of ₹x?
1) 2 successive discounts of 25% and 15%
2) Single discount of 20%
3) 2 free on purchase of 3 items
4) 3 free on purchase of 7 items
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Scheme 3.
Let the MP of the product be 100.
1) SP = 100 × 75/100 × 85/100
SP = 63.75
Discount = 100 - 63.75 = 36.25
2) SP = 100 × 80/100 = 80
Discount = 100 - 80 = 20
3) Discount = (2/5) × 100 = 40
4) Discount = (3/10) × 100 = 30
Hence the maximum discount is obtained in scheme 3.