GRE : Problem Solving





Example-5




Question


Successive discounts of 40% and 20% on the listed is equivalent to a single discount of

(A) 20%

(B) 30%

(C) 52%

(D) 1/3%

(E) 60%


Analysis


Successive discounts means the second discount is not on the initial price, but is on the reduced price after the first discount.

Let us assume that the initial price is $ 100. The first discount of 40% reduced the price to $ 60.

The next discount of 20% on this reduced price of $ 60 is:

= [20 X 60] / 100

= 1200/100

= 12

After this discounted amount of $12 is deducted from $60, the sales price is $ 48.

So, the Successive discounts of 40% and 20% have reduced the listed price by $ 52.

So, as the percent of the listed price of $ 100, it is $ 52.

So, the answer is (C).

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