Compare single versus successive discounts: Find the difference between: (a) a flat 30% discount on ₹2000 and (b) two successive discounts of 25% and 5% on ₹2000.

Difficulty: Easy

Correct Answer: ₹ 25

Explanation:


Introduction / Context:
We compare absolute discount amounts under two schemes on the same base price. Compute final prices, then compare discounts (or directly compare discounts by subtraction).


Given Data / Assumptions:
Marked amount (or base) = ₹2000.


Concept / Approach:
Flat 30% discount gives a fixed reduction of 0.30*2000. Successive discounts reduce the base stepwise: first by 25%, then 5% on the reduced price. Take the difference in absolute rupees between the two discount totals.


Step-by-Step Solution:

Flat 30%: Discount = 0.30*2000 = ₹600; Final = ₹1400 Successive: First 25% ⇒ ₹2000 → ₹1500; then 5% ⇒ 0.95*1500 = ₹1425; Discount = 2000 − 1425 = ₹575 Difference in discounts = 600 − 575 = ₹25


Verification / Alternative check:
Use factors: 1 − 0.30 = 0.70; 0.75*0.95 = 0.7125; compare final prices 1400 vs 1425 to see difference ₹25.


Why Other Options Are Wrong:
₹30, ₹35, ₹40, ₹20 do not match the exact factor-based computation.


Common Pitfalls:
Adding 25% and 5% to claim 30% (equal), overlooking multiplicative compounding.


Final Answer:
₹ 25

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