X was offering two successive discounts of 12 percent and 8 percent on an item while Y was offering flat 20 percent discount on the same item. What is the difference between overall discount given by X and Y?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 0.96 percent.
X was offering two successive discounts of 12 percent and 8 percent
We know that,
The equivalent discount of two discounts can be found by the given formulae = x + y + xy/100
x = 12 and, y = 8
⇒ -12 + -8 + (-12 × -8)/100
⇒ -12 + -8 + 96/100 = - 20 + 96/100 = - 20 + 0.96 = -19.04% [The negative sign here shows the discount]
while Y was offering a flat 20 percent discount on the same item
Hence, the required difference = 20 - 19.04 = 0.96 percent