Two stores A and B mark the price of an item identically. A allows $3$ successive discounts of $10\%$ each. B allows $10\%$ discount on the list price and a subsequent discount of $19\%$. Under the circumstances, which of the following is true?
Aptitude
Profit and Loss
Difficulty: Easy
Choose an option
-
AThe price of the article is cheaper at A.
-
BThe price of the article is cheaper at B.
-
CThe price of the article is same at A and B.
-
DThe price cannot be determined.
Answer
Correct Answer: The price of the article is same at A and B.
Explanation
### Concept & Logic
To compare different discount structures, find the final multiplier or equivalent discount for each store.
$$ \text{Final Price} = \text{List Price} \times \left(1 - \frac{d_1}{100}\right) \times \left(1 - \frac{d_2}{100}\right) \dots $$
### Step-by-Step Solution
* **Given:**
* Store A discounts = $10\%$, $10\%$, $10\%$
* Store B discounts = $10\%$, $19\%$
* **Calculation:**
* Assume the marked price is $100$.
* **Store A:**
Price after 1st discount = $100 \times 0.9 = 90$.
Price after 2nd discount = $90 \times 0.9 = 81$.
Price after 3rd discount = $81 \times 0.9 = 72.9$.
* **Store B:**
Price after 1st discount = $100 \times 0.9 = 90$.
Price after 2nd discount = $90 \times (1 - 0.19) = 90 \times 0.81$.
$90 \times 0.81 = 72.9$.
* Since both final prices are $72.9$, the price is the same at both stores.
### Exam Strategy & Shortcut
Notice that Store A gives three $10\%$ discounts. The first two combine to $10 + 10 - 1 = 19\%$. So, Store A effectively gives successive discounts of $19\%$ and $10\%$.
Store B gives successive discounts of $10\%$ and $19\%$. Since multiplication is commutative, a $19\%$ discount followed by a $10\%$ discount is exactly the same as a $10\%$ discount followed by a $19\%$ discount. Thus, they must be equal.
### Common Pitfall
Trying to estimate the answer by adding the percentages (Store A: $30\%$, Store B: $29\%$) and incorrectly concluding that A is cheaper.
### Final Answer
Therefore, the correct answer is **The price of the article is same at A and B.**