A 20% discount is offered on an item. By applying a promo code, the customer wins 15% cashback. What is the effective discount?
- A30.8 percent
- B30 percent
- C12 percent
- D32 percent
Solution & Step-by-step Explanation
Let the marked price of the item be $100.
Apply the first discount of 20%:
Price after 20% discount=100−(
100
20
×100)=80
Apply the cashback of 15% on the reduced price:
Cashback amount=
100
15
×80=12
Effective price paid by the customer=80−12=68
Calculate the effective total discount:
Total discount=100−68=32
Effective discount percentage=(
100
32
)×100%=32%
Alternatively, using the successive discount formula:
Effective Discount=x+y−
100
xy
Effective Discount=20+15−
100
20×15
=35−3=32%
Apply the first discount of 20%:
Price after 20% discount=100−(
100
20
×100)=80
Apply the cashback of 15% on the reduced price:
Cashback amount=
100
15
×80=12
Effective price paid by the customer=80−12=68
Calculate the effective total discount:
Total discount=100−68=32
Effective discount percentage=(
100
32
)×100%=32%
Alternatively, using the successive discount formula:
Effective Discount=x+y−
100
xy
Effective Discount=20+15−
100
20×15
=35−3=32%