The difference between a discount of 40% on Rs. 500 and two successive discounts of 36% and 4% on the same amount is:
The correct option is A: Rs. 7.20
Case (i) : Discount of 40% on Rs. 500
Discount amount =40% of 500
=40100×500=Rs 200
Case (ii): Two successive discounts of 36% and 4% on Rs 500
First Discount of 36%=36% of 500=36100×500=Rs 180
Second Discount of 4% on (500−180=Rs 320)=4% of 320=4100×320=12.8
Total discount in case (ii) =180+12.8=Rs. 192.8
So, Difference in discount =200−192.8=Rs. 7.2