A shopkeeper normally allows a 10% discount on the mark price. During a sale season, he decides to give two more discounts, the first being at a rate of 50% of the original and the second at a rate of 40% of the first. What is the equivalent single discount percent?
Answer & explanation
Correct answer: option 4
Let the marked price = 100
SP @ 10% discount = 90
Value of two more discounts = 10 × \(\frac{50}{100}\) = 5%
and, IInd = 5 × \(\frac{40}{100}\) = 2%
Selling price after all discounts = 90 × \(\frac{95}{100}\) × \(\frac{98}{100}\)
= 83.79
Total Discount = 100 - 83.79 = 16.21%