Discussion

If successive discounts are 15% and 10% then, what is its single equivalent discount?

Answer: C

\[ (1 - 0.15)(1 - 0.10) = 0.85 \times 0.90 = 0.765 \]

\[ \text{single equivalent discount} = 1 - 0.765 = 0.235 = 23.5\% \]

Or by the formula

\[ a + b - \frac{ab}{100} = 15 + 10 - \frac{150}{100} = 23.5\% \]

The naive sum of 25% overstates the discount by exactly the correction term \( \tfrac{ab}{100} = 1.5\% \).

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