Question : Reema went to a shopping mall to buy a gift. She saw a shop giving successive discounts of 50% and 30%, and from there selected a gift whose MRP was INR 1,700. How much did Reema have to pay to buy the gift?
Option 1: INR 255
Option 2: INR 850
Option 3: INR 340
Option 4: INR 595
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Correct Answer: INR 595
Solution :
The formula for two successive discounts = d
1
+ d
2
– d
1
× d
2
where d
1
and d
2
are the two discounts expressed as decimals.
d
1
= 0.50 and d
2
= 0.30
Substituting these values into the formula,
Net discount = 0.50 + 0.30 – 0.50 × 0.30 = 0.65
So, the net discount is 65%.
Final price = MRP × (1 – Net discount)
Final price = 1700 × (1 – 0.65) = INR 595
Hence, the correct answer is INR 595.
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