Question:
Find the single discount which is equivalent to two successive discounts of 20% and 5%.
Solution:
Let the marked price of the article be Rs 100.
First discount = 20%
Price after the first discount = (100 − 20) = Rs 80
Second discount = 5% of 80
$=\frac{5}{100} \times 80$
$=\operatorname{Rs} 4$
Price after the second discount = (80 − 4) = Rs 76
Net selling price = Rs 76
∴ Single discount equivalent to the given successive discounts = (100 − 76)% = 24%