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Question : On the marked price of INR 1,250 of an article, three successive discounts of 5%, 15%, and 20% were offered, The amount (in INR) of discount received by a customer is:

Option 1: 442.50

Option 2: 950.25

Option 3: 450

Option 4: 807.50


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 442.50


Solution : Total Discount = 1 − (1 − D1​) × (1 − D2​) × (1 − D3​)
where D1, D2, and D3​ are discount percentages (decimal values).
Here, D1 = $\frac{5}{100}$ = 0.05
D2 = $\frac{15}{100}$ = 0.15
D3 = $\frac{20}{100}$ = 0.20
So, Total Discount = 1 − (1 − 0.05​) × (1− 0.15) × (1 − 0.20)
⇒ Total Discount = 1− (0.95 × 0.85 × 0.80)
⇒ Total Discount = 0.354
Discount Amount = Total Discount × Marked Price
= 0.354 × 1250
= INR 442.50
Hence, the correct answer is 442.50.

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