A shopkeeper offers the following four schemes: A) Two successive discounts of 32% and 40% B) Buy 1, get 5 free C) A single discount of 48% D) Two successive discounts of 8% and 33% Which scheme is best for the shopkeeper?
D
The scheme best for the shopkeeper is the one giving the smallest effective discount, so compute the single equivalent discount of each.
Scheme A: two successive discounts of 32% and 40% give an effective discount of \(32 + 40 - \dfrac{32 \times 40}{100} = 72 - 12.8 = 59.2\%\).
Scheme B: "Buy 1, get 5 free" means the customer pays for 1 article but receives 6, so the effective discount is \(\dfrac{5}{6} \times 100 \approx 83.33\%\).
Scheme C: a single discount of \(48\%\).
Scheme D: two successive discounts of 8% and 33% give an effective discount of \(8 + 33 - \dfrac{8 \times 33}{100} = 41 - 2.64 = 38.36\%\).
Comparing the effective discounts \(59.2\%,\ 83.33\%,\ 48\%,\ 38.36\%\), the smallest is \(38.36\%\) from Scheme D.
Hence, the scheme best for the shopkeeper is Scheme D.
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