After getting two successive discounts, a book with a list price of Rs. 150 is available at Rs. 105. If the second discount is 12.5%, find the first discount.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 20%
In successive discounts the second discount is taken on the price left after the first, not on the list price. So the working goes backwards from the final price.
After the second discount of 12.5% the buyer pays 87.5% of the price before it: \(0.875\times P=105\)
Price after the first discount: \(\displaystyle P=\frac{105}{0.875}=\) Rs. 120
First discount \(=150-120=\) Rs. 30, that is \(\displaystyle\frac{30}{150}\times100=\) 20%