A customer wanted to purchase an item marked for ₹10000. Shopkeeper offered two types of discounts, 25% flat discount or successive discounts of 14% and 12%. Which is the better offer for the customers and by how much?
Answer & explanation
Correct answer: option 1
An item purchased by customer = Rs. 10000
First types of discounts = 25%
Second types of discount = successive discounts of 14% and 12%.
Successive discount = x + y - \(\frac{x × y}{100}\)
Successive discount = 14 + 12 - \(\frac{14 × 12}{100}\)
⇒ (26 – 1.68)
⇒ 24.32%
The best discount = First types of discount – Second types of discount
⇒ (25 – 24.32)%
⇒ 0.68%
Now,
The better offer for the customers = Rs. (10000 × \(\frac{0.68}{100}\) )
⇒ Rs. 68
First offer by ₹68