Question

which bargain is better successive discount of 20% , 15% , 10% and 25% , 12%, 8% .






​

Answer 1

Answer:

25% , 12%, 8%

Solution

Let the price of the article be M

1) In the first case, the final amount that is to be paid by the customer after successive discounts = M∗(1−0.20)∗(1−0.15)∗(1−0.10)=M∗0.8∗0.85∗0.9=0.612M

2) In the second case, the final amount that is to be paid by the customer after successive discounts = M∗(1−0.25)∗(1−0.12)∗(1−0.08)=M∗0.75∗0.88∗0.92=0.6072M

Since, 0.6072<0.612, second set of discounts is a better option to the customer