Successive Discounts Comparison

MAT 2018 · Mathematical Skills · Easy · Percentages

A shopkeeper has two alternatives: I. Giving 2 successive discounts of 20% and 30%. II. Giving 2 successive discounts of 39% and 15%.

Which of the following is true?

  1. A.

    Alternative I is better for the customer.

  2. B.

    Alternative I is better than a discount of 42% for the shopkeeper.

  3. C.

    Alternative II is better than a discount of 40% for the customer.

  4. D.

    No conclusion is possible.

Answer

C

Explanation

Equivalent discount for Alternative I = 20+30−20×30100=50−6=44%20 + 30 - \frac{20 \times 30}{100} = 50 - 6 = 44\%. Equivalent discount for Alternative II = 39+15−39×15100=54−5.85=48.15%39 + 15 - \frac{39 \times 15}{100} = 54 - 5.85 = 48.15\%. Since 48.15%>40%48.15\% > 40\%, Alternative II is better than a discount of 40% for the customer.

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