Discussion
If a shopkeeper gives 20% discount and then 10% discount on a pen, which has the marked price of Rs. 500, how much would be the selling price of the pen?
Answer: D
Successive discounts multiply; they do not add to 30%.
\[ \text{SP} = 500 \times (1 - 0.20) \times (1 - 0.10) \]
\[ = 500 \times 0.80 \times 0.90 = 500 \times 0.72 = \text{Rs. } 360 \]
The equivalent single discount is 28%, not 30%: the second 10% is charged on Rs. 400 rather than on Rs. 500, so it saves Rs. 40 instead of Rs. 50. Adding the discounts would give Rs. 350, which is the listed trap.
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