| A company offers three types of successive discounts |
| (i) 25% and 15% |
| (ii) 30% and 10% |
| (iii) 35% and 5%. |
| Which offer is the best for a customer? |
A) First offer
B) Second offer
C) Third offer
D) Anyone, all are equally good
Correct Answer: C
Solution :
| First Type |
| Equivalent discount \[=\left( 25+15-\frac{25\times 15}{100} \right)%\] |
| \[=(40-3.75)%=36.25%\] |
| Second Type |
| Equivalent discount \[=\left( 30+10-\frac{30\times 100}{100} \right)%\] |
| \[=(40-3)%=37%\] |
| Third Type |
| Equivalent discount \[=\left( 35+5-\frac{35\times 5}{100} \right)%\] |
| \[=(40-1.75)%=38.25%\] |
| Clearly, third offer is best for a customer. |
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