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The marked price of an article is ₹12,000. Successive discounts of 15% and 20% are offered on it. Find the selling price of the article.
₹8,160
₹8,400
₹7,920
₹8,640
₹8,160
Use the ratio method: 15% is 17/20 and 20% is 4/5. Multiply 12000×2017×54=12000×10068=8160.
Marked Price (MP) = ₹12,000, Successive discounts = 15% and 20%
SP=MP×(1−100d1)×(1−100d2)
Use the ratio method: 15% is 17/20 and 20% is 4/5. Multiply 12000×2017×54=12000×10068=8160.
Students often add the discount percentages (15% + 20% = 35%) and apply a single 35% discount, which is incorrect for successive discounts.
Calculate first discount value
After a 15% discount on ₹12,000, the price becomes 12000×(1−0.15)=12000×0.85.
12000×0.85=10200
Calculate second discount value
Apply the second discount of 20% on the new amount ₹10,200, which is 10200×(1−0.20)=10200×0.80.
10200×0.8=8160
Verification
The final selling price after applying both successive discounts is ₹8,160.
SP=8160
A is correct because applying successive discounts of 15% and 20% to ₹12,000 results in a final selling price of ₹8,160.
This concept is identical to calculating compound depreciation in financial mathematics or successive percentage changes in data interpretation.
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