Which of the following schemes will yield the minimum discount?
1) 2 successive discounts of 5% and 5%
2) Single discount of 10%
3) 2 successive discounts of 8% and 2%
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Scheme 1 only.
Scheme 1:
Successive discounts of 5% and 5% = 5 + 5 - (5 × 5)/100 = 9.75% [Minimum]
Scheme 2:
Single discount = 10%
Scheme 3:
Successive discounts of 8% and 2% = 8 + 2 - (8 × 2)/100 = 9.84%