Question 77

25% discount is offered on an item. By applying a promo code the customer wins 4% cash back. What is the effective discount?

Solution

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

Amount after 25 % discount = $$100x - \frac{25}{100} \times 100x$$

= $$100x - 25x = Rs. 75x$$

Selling price after 4 % cashback = $$75x - \frac{4}{100} \times 75x$$

= $$75x - 3x = Rs. 72x$$

=> Total discounted amount = $$100x - 72x = Rs. 28x$$

$$\therefore$$ Effective discount = $$\frac{28 x}{100 x} \times 100 = 28 \%$$

=> Ans - (A)

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