Question 38

30% discount is offered on an item. By applying a promo code the customer wins 5% cash back. What is the effective discount?

Solution

Let the marked price of item = Rs. $$100x$$

Amount after 30 % discount = $$100x - \frac{30}{100} \times 100x$$

= $$100x - 30x = Rs. 70x$$

Selling price after 5 % cashback = $$70x - \frac{5}{100} \times 70x$$

= $$70x - 3.5x = Rs. 66.5x$$

=> Total discounted amount = $$100x - 66.5x = Rs. 33.5x$$

$$\therefore$$ Effective discount = $$\frac{33.5 x}{100 x} \times 100 = 33.5 \%$$

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