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Question
Two dealers A and B selling the same model of refrigerator mark them under the same selling price. A gives successive discount of 25% and 5% and B gives successive discounts of 10% and 20%. From whom is it more advantageous to purchase the refrigerator?
Solution
Let the marked price be Rs.100
For dealer A, successive discounts = 25%, 5%
S.P. = `(1 - "D"_1/100)(1 - "D"_2/100)"M.P."`
= `(1 - 25/100)(1 - 5/100)100`
= `(75)/(100) xx (95)/(100) xx 100`
= Rs.71.25
Total discount
= Rs.100 - Rs.71.25
= Rs.28.50
For dealer B, successive discounts = 10%, 20%
S.P. = `(1 - "D"_1/100)(1 - "D"_2/100)"M.P."`
= `(1 - 10/100)(1 - 20/100)100`
= `(90)/(100) xx (80)/(100) xx 100`
= Rs.72
Total discount
= Rs.100 - Rs.72
= Rs.28
∴ Discount from dealer A is better.
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