A retailer offers the following discount schemes for an article to his customers.
A. Two equal successive discounts of 15% .
B. Two successive discounts of 12% and 18%.
C. Buy 7 articles and get 3 free.
Which scheme is favourable to a customer? (assuming buys articles in a multiple of 10)
Answer & explanation
Correct answer: option 2
Successive discount = X + y - \(\frac{x × y}{100}\)
A. Two equal successive discounts of 15%= 15 + 15 - \(\frac{15 × 15}{100}\) = 27.75%
B. Two successive discounts of 12% and 18% = 18 + 12 - \(\frac{18 × 12}{100}\) = 27.84%
C. Buy 7 articles and get 3 free = \(\frac{3}{10}\) × 100 = 30%