A customer was offered a discount of 40% on a piece of cloth. On insisting further, the shopkeeper agreed to a further discount of 20% on the above. What was the effective discount(%) offered to the customer?

Let's assume the MRP of a piece of cloth is 100y.

A customer was offered a discount of 40% on a piece of cloth. On insisting further, the shopkeeper agreed to a further discount of 20% on the above.

Selling price after two discounts = 100y of (100-40)% of (100-20)%

= 100y of 60% of 80%

= $$100y\times\frac{60}{100}\times\frac{80}{100}$$

= $$y\times6\times8$$

= 48y

Effective discount offered to the customer = 100y-48y

= 52y

Discount percentage = $$\frac{52y}{100y}\times100$$

= 52%