Subscribe To This Site
GRE : Problem Solving
Successive discounts of 40% and 20% on the listed is equivalent to a single discount of
(A) 20%
(B) 30%
(C) 52%
(D) 1/3%
(E) 60%
Successive discounts means the second discount is not on the initial price, but is on the reduced price after the first discount.
Let us assume that the initial price is $ 100. The first discount of 40% reduced the price to $ 60.
The next discount of 20% on this reduced price of $ 60 is:
= [20 X 60] / 100
= 1200/100
= 12
After this discounted amount of $12 is deducted from $60, the sales price is $ 48.
So, the Successive discounts of 40% and 20% have reduced the listed price by $ 52.
So, as the percent of the listed price of $ 100, it is $ 52.
So, the answer is (C).