A shoe manufacturing company offers 3 types of discount schemes to its customers:
(i) 20% and 12%
(ii) 25% and 5%
(iii) 30% and 3% at different stages of sales. Find the best scheme for the customer.
Answer & explanation
Correct answer: option 1
Successive discount = x + y - \(\frac{x × y}{100}\)
(i) 20% and 12% = 20 + 12 - \(\frac{20 × 12}{100}\) = 29.6%
(ii) 25% and 5% = 25 + 5 - \(\frac{25 × 5}{100}\) = 28.75%
(iii) 30% and 3% = 30 + 3 - \(\frac{30 × 3}{100}\) = 32.1%
Only Scheme (iii)