Profit and Loss – Comparing one big discount with two successive discounts: Find the difference between (i) a single discount of 40% on Rs 500 and (ii) two successive discounts of 36% and 4% on Rs 500.

Introduction / Context:
This asks for the difference in absolute discount amounts under two pricing schemes. Compute the amount paid under each scheme, convert to discount amounts, and subtract to find the difference.

Given Data / Assumptions:

• Labeled price = Rs 500
• Case (i): single 40% discount
• Case (ii): successive 36% and 4% discounts

Concept / Approach:
For a discount d, payable amount = 500 * (1 − d). For successive discounts, multiply remaining-value factors (0.64 and 0.96).

Step-by-Step Solution:
Case (i) payable = 500 * 0.60 = 300 ⇒ discount = 200Case (ii) payable = 500 * 0.64 * 0.96 = 500 * 0.6144 = 307.20 ⇒ discount = 192.80Difference in discounts = 200 − 192.80 = Rs 7.20

Verification / Alternative check:
Alternatively compute difference via payable amounts: 307.20 − 300 = 7.20, same result.

Why Other Options Are Wrong:
0 ignores the multiplicative effect; 2.00 and 1.93 are miscalculations; 5.00 is guesswork.

Common Pitfalls:
Adding 36% and 4% to claim 40% equivalence, which is incorrect for successive discounts.

Final Answer:
Rs 7.20