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A retailer permits a trade discount of 15%, followed by a cash discount of 20%, on an article. The net percentage of discount is:
32%
31%
33%
34%
32%
Use the formula x+y−(xy/100). With 15 and 20, calculate 15+20=35, then subtract (15×20)/100=300/100=3. Result is 35−3=32.
Two successive discounts are provided: trade discount of 15% and cash discount of 20%.
Dnet=(d1+d2−100d1×d2)%
Use the formula x+y−(xy/100). With 15 and 20, calculate 15+20=35, then subtract (15×20)/100=300/100=3. Result is 35−3=32.
Many students incorrectly add the percentages directly (15%+20%=35%), failing to account for the second discount being applied to the reduced price.
Define Successive Discount Formula
For two successive discounts of d1% and d2%, the equivalent net discount percentage is given by the formula:
Dnet=d1+d2−100d1×d2
Substitute Given Values
Substitute the given values d1=15 and d2=20 into the formula:
Dnet=15+20−10015×20
Calculate Final Result
Simplify the expression: 15+20=35, and 10015×20=100300=3. Therefore, 35−3=32%.
Dnet=35−3=32%
A is correct because the net percentage of discount calculated using the successive discount formula is 32%.
This same 'successive change' formula (x+y+100xy) is used in profit/loss, population growth, and compound interest problems.