A trader offers the following discount schemes on the purchase of a refrigerator:
(i) a discount of 10% followed by a discount of 8%
(ii) successive discounts of 12% and 10%
(iii) two successive discounts of 12%
(iv) a discount of 20%
In which scheme is the selling price the lowest?

Question

Accepted Answer

Let's assume the marked price of the refrigerator is 100 units.

Scheme (i): 10% discount followed by 8%
First discount: 10% of 100 = 10, price after first discount = 100 - 10 = 90
Second discount: 8% of 90 = 7.2, price after second discount = 90 - 7.2 = 82.8

Scheme (ii): 12% and 10% successive discounts
First discount: 12% of 100 = 12, price after first discount = 100 - 12 = 88
Second discount: 10% of 88 = 8.8, price after second discount = 88 - 8.8 = 79.2

Scheme (iii): two successive discounts of 12%
First discount: 12% of 100 = 12, price after first discount = 100 - 12 = 88
Second discount: 12% of 88 = 10.56, price after second discount = 88 - 10.56 = 77.44

Scheme (iv): a single discount of 20%
Discount: 20% of 100 = 20, price after discount = 100 - 20 = 80

Comparing the final prices:
(i) 82.8
(ii) 79.2
(iii) 77.44
(iv) 80

The lowest selling price is under scheme (iii) with two successive discounts of 12%, which results in a selling price of 77.44 units.

Answer

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