Question 58

A customer wanted to purchase an item marked for ₹10000. Shopkeeper offered two types of discounts, 25% flat discount or successive discounts of 14% and 12%. Which is the better offer for the customers and by how much?

Solution

25% flat discount

Selling price of the item = $$\frac{75}{100}\times10000$$ = ₹7500

Successive discounts of 14% and 12%

Price of the item after 14% discount = $$\frac{86}{100}\times10000$$ = ₹8600

Price of the item after 12% discount = $$\frac{88}{100}\times8600$$ = ₹7568

Difference between selling prices = 7568 - 7500 = ₹68

First offer is better by ₹68.

Hence, the correct answer is Option A

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