A retailer offers the following discount schemes for buyers on an article.
I. Two successive discounts of 10%.
II. A discount of 12% followed by a discount of 8%.
III. Successive discounts of 15% and 5%.
IV. A discount of 20%.
The selling price will be minimum under the scheme
Correct Answer: Description for Correct answer:
I. Equivalent single discount to 10% and 10%
= \( \Large \left(10+10-\frac{10 \times 10}{100}\right)\% \) = 10%
II. Equivalent single discount to 12% and 8%
= \( \Large 12+8-\frac{12 \times 8}{100} \)
= 20 - 0.96 = 19.04%
III. Equivalent single discount to 15% and 5%
= \( \Large 15+5\frac{15 \times 5}{100} \)
= 20 - 0.75 = 19. 25%
IV. Equivalent single discount to 20% = 20%
So, the selling price will be minimum under the scheme IV as in this scheme, the discount is maximum.
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