Equivalent single discount: Two successive discounts of 20% and 5% equal what single discount percentage?

Introduction / Context:
Successive percentage reductions require multiplication of retention factors. Compute the compounded factor, then translate back to a single discount value.

Given Data / Assumptions:

• Discounts: 20% and 5%
• Retention factors: 0.80 and 0.95

Concept / Approach:
Overall retention = 0.80 * 0.95 = 0.76. Hence overall discount = 1 − 0.76 = 0.24 = 24%.

Step-by-Step Solution:
Compute 0.80 * 0.95 = 0.76Single discount = 1 − 0.76 = 0.24 = 24%

Verification / Alternative check:
Apply to ₹100: After 20% off → ₹80; after 5% off → ₹76; single 24% off also gives ₹76.

Why Other Options Are Wrong:
25% simply adds; 18% and 15% understate the reduction; 23% is a rounding distractor.

Common Pitfalls:
Adding discounts directly or rounding intermediate products before final conversion.

Final Answer:
24%