Three successive discount of 15%, 20% and 10% are equivalent to what single discount

Question: Three successive discount of 15%, 20% and 10% are equivalent to what single discount ?

• 30
• 35
• 38.8 
• 42.3 

Answer: 

$$\text{Equivalent Discount}=A+B-\frac{A\times B}{100}$$

 

the first two discounts (15% and 20%):

$$D_1=15+20-\frac{15\times 20}{100}$$ $$=35-3=32\mathrm{\%}$$

Now apply the third discount (10%) on this new equivalent discount:

$$D_2=32+10-\frac{32\times 10}{100}$$ $$=42-3.2=38.8\mathrm{\%}$$

**A single discount of 38.8% is equivalent to successive discounts of 15%, 20%, and 10%.

Additional Information :

AB Method 

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