Question

What is a single discount equivalent to the three successive discounts of 30%, 25% and 40%?

• A. 60.1%
• B. 64.2%
• C. 68.5%
• D. 65.8%

Answer 1

Answer:

C. 68.5%

Successive discounts combine multiplicatively (not by simple addition).

Remaining price fraction:
$(1 - 0.30)(1 - 0.25)(1 - 0.40)$
$= 0.70 \times 0.75 \times 0.60$
$= 0.315$

So final price = 31.5% of original.

Equivalent single discount:
$1 - 0.315 = 0.685 = 68.5\%$

Answer: 68.5%