Question : Three successive discounts of 25% each on the marked price of an item are together equivalent to a single discount of (correct up to 2 decimal places):
Option 1: 62.35%
Option 2: 60.25%
Option 3: 56.45%
Option 4: 57.81%
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Correct Answer: 57.81%
Solution : Single equivalent discount = $(a+b–\frac{a×b}{100}$)%, where $a$% and $b$% are successive discounts. Single discount equivalent to successive discounts of 25% and 25% $=25+ 25 - \frac{625}{100} = 43.75$% Single discount equivalent to successive discounts of 43.75% and 25% $=43.75 + 25-\frac{43.75×25}{100} =68.75 - \frac{1093.75}{100} = 57.81$% Hence, the correct answer is 57.81%.
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