Which of the following will yield a maximum discount on ₹ 7,500?
1. Two successive discounts of 5% and 5%
2. Single discount of 10%
3. Two successive discounts of 8% and 2%
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 2.
Option 1:
Single equivalent discount of 5% and 5% = 5 + 5 - 25/100 = 10 - 0.25 = 9.75%
Option 2:
Single discount of 10%.
Option 3:
Single equivalent discount of 8% and 2% = 8 + 2 - 16/100 = 10 - 0.16 = 9.84%
Hence, a single discount of 10% will yield a maximum discount.