Question : Three successive discounts of 15%, 20%, and 25% are given. What will be the net discount in percentage?
Option 1: 52%
Option 2: 49%
Option 3: 46%
Option 4: 40%
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Correct Answer: 49%
Solution : Given: Three successive discounts of 15%, 20%, and 25%. Single effective discount = [1 – (1 – 0.15) × (1 – 0.20) × (1 – 0.25)] × 100% = [1 – 0.85 × 0.80 × 0.75] × 100% = [1 – 0.51] × 100% = 0.49 × 100% = 49% Hence, the correct answer is 49%.
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