Question

Two dealers offer an article at the same list price. The first allows discount 20%, 10%, and 5% and the other of 15%, 12%, and 8%. Which is a better offer for the customer?

• A. 1st offer
• B. 2nd offer
• C. Both 1st offer and 2nd offer
• D. Cannot be determined

Answer 1

The correct option is A 1st offer

Let the cost price of the article $=Rs100.$

FIRST CASE-

First discount $=20\%$.

So the first $S.P.=Rs(100-20)=Rs80.$

Second successive discount $=10\%$.

So the second $S.P.=Rs.80(1-\frac{10}{100})=Rs72.$

Third successive discount $=5\%$.

So the third $S.P.=Rs.72(1-\frac{5}{100})=Rs\mathrm{68.4.}$

SECOND CASE-

First discount $=15\%$.

So the first $S.P.=Rs(100-15)=Rs85.$

Second successive discount $=12\%$.

So the second $S.P.=Rs.85(1-\frac{12}{100})=Rs\mathrm{74.8.}$

Third successive discount $=8\%$.

So the third $S.P.=Rs.74.8(1-\frac{8}{100})=Rs\mathrm{68.82.}$

$\therefore$ The first offer is the better offer for the customer since the final S.P. is less than that of the second offer.