Question
Download Solution PDFSuccessive discounts of 50% and 40% equal a single discount of:
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
First discount = 50%
Second discount = 40%
Formula used:
Single equivalent discount = 1 - (1 - First discount) × (1 - Second discount)
Calculation:
Single equivalent discount = 1 - (1 - 0.50) × (1 - 0.40)
⇒ Single equivalent discount = 1 - 0.50 × 0.60
⇒ Single equivalent discount = 1 - 0.30
⇒ Single equivalent discount = 0.70
⇒ Single equivalent discount = 70%
∴ The single equivalent discount is 70%.
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