Question : Three successive discounts of 10% are equivalent to a single discount of:
Option 1: 27.1%
Option 2: 19.0%
Option 3: 25.1%
Option 4: 26.2%
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Correct Answer: 27.1%
Solution :
For 3 successive discount $D_1, D_2$ and $D_3$,
Final discount will be $(1-(1-\frac{D_1}{100})(1-\frac{D_2}{100})(1-\frac{D_3}{100}))\times 100$%
Here, $D_1= D_2= D_3=10$%
Substituting these values, we get
Final discount = $(1-(1-\frac{10}{100})(1-\frac{10}{100})(1-\frac{10}{100}))\times 100$% = 27.1%
Hence, the correct answer is 27.1%.
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