Question : A 40% discount is offered on an item. By applying a promo code, the customer wins 10% cash back. What is the effective discount?
Option 1: 50.6%
Option 2: 46%
Option 3: 50%
Option 4: 14%
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Correct Answer: 46%
Solution :
Given: 1st discount = 40%
Second discount by applying a promo code = 10%
We know that,
Equivalent discount = $(a+b-\frac{a×b}{100}$)%,
Where $a,b$ are successive discounts.
So, Equivalent discount of two successive discounts of 40% and 10% $=40 + 10-\frac{40\times 10}{100}= 46\%$
Hence, the correct answer is 46%.
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