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Question

10% discount and then 20% discount in succession is equivalent to total discount of

The correct answer is
28%

Calculating Equivalent Discount for Successive Reductions

The question asks for the single equivalent discount when a 10% discount is followed by a 20% discount. It's important to understand that successive discounts are applied one after another, not added together.

Understanding Successive Discounts

When you get a 10% discount, the price is reduced. The second discount (20%) is then calculated on this already reduced price, not the original price. Simply adding 10% and 20% to get 30% would be incorrect.

Step-by-Step Calculation

Let's assume the original price of an item is $P$.

  1. First Discount (10%):

    The amount of the first discount is $10\%$ of $P$, which can be written as $0.10 \times P$. The price after this discount is:

    New Price = Original Price - Discount Amount

    New Price = $P - (0.10 \times P) = P \times (1 - 0.10) = P \times 0.90$.

  2. Second Discount (20%):

    The 20% discount is applied to the new price ($P \times 0.90$). The amount of the second discount is $20\%$ of $(P \times 0.90)$, which is $0.20 \times (P \times 0.90)$.

    Final Price = Price after first discount - Second Discount Amount

    Final Price = $(P \times 0.90) - (0.20 \times P \times 0.90)$

    Factor out $(P \times 0.90)$: Final Price = $(P \times 0.90) \times (1 - 0.20)$

    Final Price = $(P \times 0.90) \times 0.80 = P \times (0.90 \times 0.80)$

    Final Price = $P \times 0.72$.

  3. Calculating Total Equivalent Discount:

    The final price is $0.72 \times P$, which means the final price is 72% of the original price.

    The total discount is the difference between the original price and the final price:

    Total Discount Amount = Original Price - Final Price

    Total Discount Amount = $P - (P \times 0.72) = P \times (1 - 0.72) = P \times 0.28$.

    To express this as a percentage of the original price:

    Total Discount Percentage = $\frac{\text{Total Discount Amount}}{\text{Original Price}} \times 100\%

    Total Discount Percentage = $\frac{P \times 0.28}{P} \times 100\% = 0.28 \times 100\% = 28\%$.

Example Calculation

Let's use an example with an original price of $100.

Step 1: Apply 10% discount

  • Discount amount = $10\%$ of $100 = $10$.
  • Price after first discount = $100 - $10 = $90$.

Step 2: Apply 20% discount to the new price

  • Discount amount = $20\%$ of $90 = 0.20 \times 90 = $18$.
  • Final Price = $90 - $18 = $72$.

Step 3: Calculate total equivalent discount

  • Total discount = Original Price - Final Price = $100 - $72 = $28$.
  • Total discount percentage = $\frac{$28}{$100} \times 100\% = 28\%$.

Conclusion

Applying a 10% discount and then a 20% discount in succession is equivalent to a single total discount of 28%.

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Important Questions from Discount and MP

  1. If a trader marks the price of an article 50 percent more than the cost price and allows a discount of 30 percent, then what is his profit percentage?

  2. Printed price of a mobile is Rs. 6,400. It is sold in Rs. 2,560 with two consecutive discount. If first discount is 20%, then what is the second discount?

  3. A trader decided to mark his goods 15 percent above the cost price and then offered 40 percent discount. What will be the percentage of profit or loss?

  4. On the sale of 20 percent discount, the value of an item is Rs. 760. What was the real value of the item?

  5. What is the total discount applicable if 3 successive discounts of 20%, 10% and 12.5% are applied?

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