Question 89

10% 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 10 % discount = $$100x - \frac{10}{100} \times 100x$$

= $$100x - 10x = Rs. 90x$$

Selling price after 5 % cashback = $$90x - \frac{5}{100} \times 90x$$

= $$90x - 4.5x = Rs. 85.5x$$

=> Total discounted amount = $$100x - 85.5x = Rs. 14.5x$$

$$\therefore$$ Effective discount = $$\frac{14.5 x}{100 x} \times 100 = 14.5 \%$$

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