Successive discounts of 10% and 20% are equivalent to a single discount of
A
30%
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B
15%
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C
72%
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D
28%
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E
None of these
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Solution
The correct option is E28% Let P be the original price. Then a discount of 10% gives a new price 10−.1P=..9P. Following this by a discount of 20% we have .9P=.2(.9P)=.72P. Thus the net discount is P−.72P=.28P or 28%; or Net discount =d1+d2−d1d2=10100+20100−2100=28%.