Two successive price decreases of 20% and 30% of an article are equivalent to a single price decrease of:

Question

Question

This question was previously asked in

SSC MTS (2022) Official Paper (Held On: 03 May 2023 Shift 3)

Answer 1

Given data:

First decrease = 20%

Second decrease = 30%

Concept: For two successive discounts, the equivalent single discount = 1 - (1 - first decrease)(1 - second decrease)

Solution:

⇒ Equivalent decrease = 1 - (1 - 0.20)(1 - 0.30) = 1 - 0.56 = 0.44 or 44%

Therefore, two successive price decreases of 20% and 30% are equivalent to a single price decrease of 44%.