Question : 20% discount is offered on an item. By applying a promo code, the customer wins 30% cashback. What is the effective discount?
Option 1: 44%
Option 2: 30%
Option 3: 32%
Option 4: 22%
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Correct Answer: 44%
Solution :
Let the marked price be Rs. 100.
Discount = 20%
Selling price = 80% of marked price = 80% of Rs. 100 = Rs. 80
Amount discounted = Rs. 100 — Rs. 80 = Rs. 20
Cashback = 30% of selling price
Amount got as cashback = 30% of Rs. 80 = $\frac{30 × 80}{100}$ = Rs. 24
Total amount discounted = Rs. 20 + Rs. 24 = Rs. 44
Effective discount = $\frac{44 × 100}{100}$ = 44%
Hence, the correct answer is 44%.
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