Compare three successive-discount offers: which gives the lowest net price? A company offers three alternative discount structures on the list price: (i) 25% then 15%, (ii) 30% then 10%, (iii) 35% then 5%. For a customer, which offer is best (i.e., yields the largest overall discount)?

Introduction / Context:
Successive discounts multiply their remaining-price factors, not add their percentages. The “best” for a buyer means the highest net discount (or lowest net price), found by comparing multiplicative reductions.

Given Data / Assumptions:

• (i) 25% then 15% ⇒ price factor = 0.75 * 0.85.
• (ii) 30% then 10% ⇒ price factor = 0.70 * 0.90.
• (iii) 35% then 5% ⇒ price factor = 0.65 * 0.95.

Concept / Approach:
Net discount = 1 − (product of price factors). The smallest price factor (largest discount) wins.

Step-by-Step Solution:
(i) Price factor = 0.75 * 0.85 = 0.6375 ⇒ Net discount = 36.25%.(ii) Price factor = 0.70 * 0.90 = 0.63 ⇒ Net discount = 37.00%.(iii) Price factor = 0.65 * 0.95 = 0.6175 ⇒ Net discount = 38.25%.Largest discount is 38.25% (offer iii).

Verification / Alternative check:
Try a list price of 100. Final prices: (i) 63.75, (ii) 63.00, (iii) 61.75. The lowest final price is from (iii), confirming it is the best for the customer.

Why Other Options Are Wrong:
Offers (i) and (ii) produce smaller discounts; “equally good” is false as the final prices differ; “None of these” is inapplicable.

Common Pitfalls:
Adding percentages directly (e.g., 25+15=40) is incorrect for successive discounts. Always multiply the remaining price factors.

Final Answer:
Third offer