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Question
The list price of a watch is Rs.4000. It is available either at 25% flat discount or at successive discounts of 15% and 12%. Calculate the better offer and the amount paid in the second offer.
Solution
Successive discounts of 15% and 12% is equivalent to
`(1 - 15/100)(1 - 12/100)`
= `1 - (85)/(100).(88)/(100)`
= `1 - (7480)/(10000)`
= 0.2520
= 25.2%
So, against a flat discount of 25%, two successive discounts of 15% and 12% is better.
∴ Discount in the second
= 25.2% of Rs.4000
= `(25.2)/(100) xx 4000`
= Rs.1008
∴ Amount paid in the second
= M.P. -Discount
= Rs.4000 - Rs.1008
= Rs.2992.
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