Question

A manufacturer offers a $20\%$ rebate on the market price of a product. The retailer offers another $30\%$ rebate on the reduced price. The two reduction are equal to a single reduction of:

• A. $50\%$
• B. $44\%$
• C. $46\%$
• D. $40\%$

Answer 1

Answer: (B)

$44\%$

Let the marked price of the product is $Rs.100$.

Therefore, the effective price after the first rebate of $20\%$, is

$\Rightarrow 100-(100\times \frac{20}{100})=Rs.80$

Again, the effective price after the second rebate of $30\%$, is

$\Rightarrow 80-(80\times \frac{30}{100})=Rs.56$

Therefore, the single effective reduction is,

$\Rightarrow \frac{(100-56)}{100}\times 100=44\%$

Hence, two consecutive rebates of $20\%$ and $30\%$ on a product is equal to a single rebate of $44\%$ on that product.