Question 52

5% discount is offered on an item. By applying a promo code the customer wins 20% cash back. What is the effective discount?

Solution

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

Amount after 5 % discount = $$100x - \frac{5}{100} \times 100x$$

= $$100x - 5x = Rs. 95x$$

Selling price after 20 % cashback = $$95x - \frac{20}{100} \times 95x$$

= $$95x - 19x = Rs. 76x$$

=> Total discounted amount = $$100x - 76x = Rs. 24x$$

$$\therefore$$ Effective discount = $$\frac{24 x}{100 x} \times 100 = 24 \%$$

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