Question

Two dealers X and Y selling the Same model of refrigerator mark them under the Same selling price. X gives successive discount of 25% and 5% and Y gives successive discount of 16% and 12%. From whom it is more advantageous to purchase the refrigerator?

Answer 1

From X it is. As if we add the percentage of both discounts X =30 and Y=28

Answer 2

It is more advantageous to buy the refrigerator from seller X

The concept of successive discount involves giving discount on already discounted prices.

Let the Original price of Refrigerator be z.

Case 1: Buying from seller x

First Discount: 25%

Remaining price = (100-25)/100* z = 75z/100 = 3z/4

Second Discount: 5%

Remaining price = (100-5)/100* 3z/4 = 0.7125z

Case 2: Buying from seller y

First Discount: 16%

Remaining price = (100-16)/100* z = 84z/100 = 21z/25

Second Discount: 12%

Remaining price = (100-12)/100* 21z/25 = 0.7392z

Hence, we should buy the refrigerator from seller x since the price is less