The selling price of a product was equal to 50% of the cost price. Two successive discounts were offered on the product. If the first discount was 20%, then how much was the other discount?
Answer & explanation
Correct answer: option 1
Let the marked price be 100
According to the question,
Let the other discount = x
100 × \(\frac{100 - 20}{100}\) × \(\frac{100 - x}{100}\) = 50 (SP which is half of the CP)
80 × (100 - x) = 5000
x = 100 - 62.5 = 37.5%
∴ Other discount is 37.5%.