A shopkeeper allows 3 successive discounts of 50%, 40% and 20% respectively. Find out equivalent discount.
Answer & explanation
Correct answer: option 4
M.R.P. : S.P.
-50% ⇒ 2 : 1
-40% ⇒ 5 : 3
-20% ⇒ 5 : 4
_____________
Total effect: 50 : 12 (*product of the above ratios)
100 : 24 ⇒⇒ 76% equivalent discount.