Question : On the marked price of INR 1,250 of an article, three successive discounts of 5%, 15%, and 20% are offered. What will be the selling price (in INR) after all discounts?
Option 1: 1,000
Option 2: 807.50
Option 3: 975.75
Option 4: 950.25
Correct Answer: 807.50
Solution : Marked price = INR 1,250 Successive discounts = 5%, 15% and 20% Selling price = marked price – discount = (100 – 5)% of (100 – 15)% of (100 – 20)% of 1250 = 95% of 85% of 80% of 1250 = 0.95 × 0.85 × 0.8 × 1250 = INR 807.50 Hence, the correct answer is 807.50.
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