Discussion

A Rs. 400 coat sells for how much after successive discounts of 10% and 5%?

Answer: B

Apply the two discounts in turn.

\[ 400 \times (1 - 0.10) = \text{Rs. } 360 \]

\[ 360 \times (1 - 0.05) = \text{Rs. } 342 \]

The single equivalent discount is

\[ 1 - 0.90 \times 0.95 = 0.145 = 14.5\% \]

slightly less than the 15% the rates suggest, because the 5% comes off Rs. 360 rather than Rs. 400.

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