Compare a single 40% discount with successive discounts of 36% and 4% on ₹500. What is the difference (in rupees) between the two discount amounts?

Introduction / Context:
Successive discounts do not add; they multiply. We are asked to compare the discount amounts (not final prices) for two schemes applied to ₹500: one discount of 40% versus successive 36% then 4% discounts. The answer is the absolute difference in rupee savings.

Given Data / Assumptions:

• Base price = ₹500
• Scheme A: single 40% discount
• Scheme B: successive 36% and 4% discounts

Concept / Approach:
Compute final prices for both and obtain discount amounts by subtracting from the base price. Then take the difference of the two discount amounts.

Step-by-Step Solution:
Scheme A discount = 0.40 * 500 = ₹200 ⇒ Final = ₹300Scheme B: after 36% off ⇒ 500 * 0.64 = ₹320; further 4% off ⇒ 320 * 0.96 = ₹307.20Scheme B discount = 500 − 307.20 = ₹192.80Difference in discounts = 200 − 192.80 = ₹7.20

Verification / Alternative check:
Equivalently, 36% then 4% equals 1 − (0.64 * 0.96) = 1 − 0.6144 = 38.56% overall; 40% − 38.56% = 1.44% of 500 = ₹7.20.

Why Other Options Are Wrong:
₹0 assumes additivity; ₹2 and ₹1.93 are numerical distractors not matching the exact multiplicative difference.

Common Pitfalls:
Adding 36% and 4% to get 40%; successive discounts never add linearly.

Final Answer:
₹ 7.20