Finding the second of two successive discounts: A TV with MRP ₹16000 is sold for ₹11400 after two successive discounts. If the first discount is 5%, find the rate of the second discount.

Introduction / Context:
Successive discounts are multiplicative. Apply the first discount to get the intermediate price, then compute the second discount needed to reduce the intermediate price to the final selling price. Always apply the second discount to the already reduced base, not to the original MRP.

Given Data / Assumptions:

• MRP M = ₹16000.
• First discount = 5% ⇒ Price after first = 0.95M = ₹15200.
• Final selling price S = ₹11400.

Concept / Approach:
Let y be the second discount rate. Then 15200 * (1 − y) = 11400. Solve for y and convert to a percentage.

Step-by-Step Solution:

Verification / Alternative check:
Net factor = 0.95 * 0.75 = 0.7125; 16000 * 0.7125 = ₹11400, consistent.

Why Other Options Are Wrong:
15%, 20%, 30%, 10% do not bring ₹15200 down to ₹11400.

Common Pitfalls:
Subtracting percentages directly or applying the second discount to the original MRP rather than to the intermediate price.

Final Answer:
25 %