An item is sold with a 5 percent discount on its marked price, and then the customer receives a 20 percent cashback on the amount actually paid. What is the effective discount percentage received by the customer?

Introduction / Context:
This question combines percentage discount with cashback, which is a common marketing practice in online and retail sales. The effective discount must consider both the reduced price and the money returned to the customer afterward.

Given Data / Assumptions:

• Initial discount on marked price = 5 percent.
• Cashback on the amount paid after discount = 20 percent.
• The customer's net effective payment is marked price minus discount minus cashback.

Concept / Approach:
Assume a convenient marked price, apply the percentage discount to find the amount paid, then compute the cashback as a percentage of that amount. Subtract cashback from the amount paid to get the net cost. Finally, compare net cost with the original marked price to find the effective discount percentage.

Step-by-Step Solution:
Let marked price = 100 units.After 5 percent discount, amount paid = 100 - 5 = 95 units.Cashback = 20 percent of 95 = 0.20 * 95 = 19 units.Net payment by customer = 95 - 19 = 76 units.Effective discount = 100 - 76 = 24 units.Effective discount percentage = (24 / 100) * 100 = 24 percent.

Verification / Alternative check:
For a different marked price, say Rs. 5000, after 5 percent discount the customer pays Rs. 4750. Cashback is 20 percent of 4750, which is Rs. 950. Net payment is 4750 - 950 = Rs. 3800. Effective discount is 5000 - 3800 = 1200, which is 24 percent of 5000, confirming the same result.

Why Other Options Are Wrong:
28.8 percent arises if someone mistakenly applies cashback on marked price. Values like 25 percent or 21 percent reflect approximate or stepwise reasoning that ignores the correct bases for each percentage.

Common Pitfalls:
Many candidates wrongly apply the cashback to the marked price instead of the discounted price or mistakenly add the percentages 5 and 20 to get 25. Percentages need to be applied to the right intermediate amounts, not simply added.

Final Answer:
The effective discount received by the customer is 24 percent.