Two successive discounts of 40% and 60% on a deal are equivalent to a single discount of:
- AOption (a)
70%
- BOption (b)
76%
- COption (c)
80%
- DOption (d)
66%
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Correct answer
76%
Why this answer is correct
Shortcut Trick
Net Discount = a + b − (a × b) ÷ 100
Here, a = 40 and b = 60.
Net Discount = 40 + 60 − (40 × 60) ÷ 100
Net Discount = 100 − 2400 ÷ 100 = 100 − 24 = 76%.
∴ The correct answer is 76%.
Alternate Method
Given: First discount = 40%, Second discount = 60%.
Formulas: Equivalent Discount = 100 − [100 × (100 − d1)/100 × (100 − d2)/100]
⇒ Let the Marked Price (MP) be 100.
⇒ After 40% discount, Price = 100 − 40 = 60.
⇒ After 60% discount on 60, Price = 60 − (60 × 60 ÷ 100) = 60 − 36 = 24.
⇒ Total Discount = MP − Final SP = 100 − 24 = 76.
⇒ Equivalent Discount% = (76 ÷ 100) × 100 = 76%.
∴ The correct answer is 76%.
Additional Information
Successive Discounts
When a series of discounts are applied one after another on the reducing balance, they are called successive discounts. The total effective discount is always less than the simple sum of individual discounts.
Marked Price & Discount
Discount is always calculated on the Marked Price (MP). SP = MP × (100 − D%)/100.