GRE : Problem Solving
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% 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).
