A company offers three types of successive discounts (i) 25% and 15% ; (ii) 30% and 10% ; (iii) 35% and 5%. Which offer is the best for a customer? (S.S.C., 2007)
Aptitude
Discount
Difficulty: Easy
Choose an option
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AFirst offer
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BSecond offer
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CThird offer
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DAny one; all are equally good
Answer
Correct Answer: Third offer
Explanation
### Concept & Equivalent Discount Maximization
For any two successive discounts $a\%$ and $b\%$, the single equivalent discount is:
$$Equivalent Discount = a + b - \frac{a \times b}{100}$$
For a customer, the "best" offer is the one that gives the highest total discount. If the sum $(a+b)$ is constant across options, the maximum discount is obtained when the product $(a \times b)$ is minimized.
### Step-by-Step Solution
* **Check the sum of discounts for all offers:**
* (i) $25 + 15 = 40$
* (ii) $30 + 10 = 40$
* (iii) $35 + 5 = 40$
* Since the sum is $40$ in all cases, the equivalent discount will be $40 - \frac{ab}{100}$.
* **Evaluate the product $ab$ for each offer:**
* (i) $25 \times 15 = 375$
* (ii) $30 \times 10 = 300$
* (iii) $35 \times 5 = 175$
* **Determine the best offer:**
* The offer with the smallest product will subtract the least amount from $40$, yielding the highest net discount.
* Since $175$ is the smallest product, offer (iii) yields the highest discount ($40 - 1.75 = 38.25\%$).
### Exam Strategy & Shortcut
Whenever a set of successive discounts has the same arithmetic sum, the combination with the **greatest difference** between the two percentage values always gives the maximum total discount. Between $(25, 15)$, $(30, 10)$, and $(35, 5)$, the gap is largest for $35\%$ and $5\%$, making it instantly recognizable as the best offer for a buyer.
### Common Pitfall
A common mistake is choosing "All are equally good" because the sums ($25+15$, $30+10$, $35+5$) all equal $40\%$. The base for the second discount changes, which fundamentally alters the total discount amount.
### Final Answer
Therefore, the correct answer is **Third offer**.