Three successive discounts on the marked price of an article are equivalent to a single discount of 19%. If the first and second discounts are 10% and 4% respectively, what is the third discount?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 6.25%
Successive discounts are multiplied, not added. A single discount of 19% means the buyer finally pays 81% of the marked price.
Let the marked price be Rs 100
After 10% discount: \(100\times0.90=\) Rs 90
After 4% discount: \(90\times0.96=\) Rs 86.40
Final price \(=100-19=\) Rs 81
Third discount \(=86.40-81=\) Rs 5.40
Third discount % \(\displaystyle =\frac{5.40}{86.40}\times100=6.25\%\)
The third discount is 6.25%.