Which scheme among the following is most beneficial to the customer?
i) Successive discounts of 25% and 25%
ii) Flat discount of 40%
iii) Buy one, get one free
iv) Successive discounts of 30% and 20%
Answer & explanation
Correct answer: option 1
i) Successive discounts of 25% and 25% =
Successive discount = 25 +25 - \(\frac{25 × 25}{100}\) = 43.75%
ii) Flat discount of 40% = 40%
iii) Buy one, get one free = \(\frac{1}{1 + 1}\) × 100= 50%
iv) Successive discounts of 30% and 20% =
Successive discount = 30 + 20- \(\frac{30 × 20}{100}\) = 44%
The most beneficial to the customer (iii) Buy one, get one free.