Question 35

As a strategy towards retention of customers, the service centre of a split AC machine manufacturer offers discount as per the following rule: for the second service in a year, the customer can avail of a 10% discount; for the third and fourth servicing within a year, the customer can avail of 11% and 12% discounts respectively of the previous amount paid, Finally, if a customer gets more than four services within a year, he has to pay just 45% of the original servicing charges. If Rohan has availed 5 services from the same service centre in a given year, the total percentage discount availed by him is approximately:

Solution

Let the original service charge be Rs. 1000
1st service charge = Rs. 1000
2nd service charge @ 10% discount = Rs. 900
3rd service charge @ 11% discount = Rs. 801
4th service charge @ 12% discount = Rs. 704.88
5th service charge @ 45% = Rs. 450
Total service charge for Rohan = Rs. 1000 + Rs. 900 + Rs. 801 + Rs. 704.88 + Rs. 450 = Rs. 3855.887
Discount % = 22.88%
Hence, option B is the correct answer.


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