Discussion

During monsoon clearance sale, Amit buys a shirt at double discount of 20% and 10%. At what price he bought the shirt if marked price was Rs. 1000?

Answer: A

A "double discount" applies the second rate to the already-reduced price.

\[ 1000 \times (1 - 0.20) = \text{Rs. } 800 \]

\[ 800 \times (1 - 0.10) = \text{Rs. } 720 \]

The single equivalent discount is

\[ 1 - 0.80 \times 0.90 = 0.28 = 28\% \]

not 30%, so he pays Rs. 720 rather than Rs. 700. Rs. 800 is the price after the first discount only.

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