Twenty successive discount of 5%, 10%, 15%, 20%,... is equivalent to what single discount?

EDUTICAL, Twenty successive discount of 5%, 10%, 15%, 20%,... is equivalent to what single discount?, math, mathematics, percentage, ssc, upsc, sat
Pijus Kumar Sir

Question: Twenty successive discount of 5%, 10%, 15%, 20%,... is equivalent to what single discount?

  • 20%
  • 50%
  • 100% 
  • None of the above 

Answer: 

successive discount formula:

Deff=A+BA×B100D_{\text{eff}} = A + B - \frac{A \times B}{100}

(where A and B are the successive discounts.)

The successive discounts are:

5%,10%,15%,...,100%5\%, 10\%, 15\%, ..., 100\%

This forms an arithmetic sequence with:

  • First term (aa) = 5%

  • Common difference (dd) = 5%

  • Number of terms (nn) = 20


*We apply the formula step by step, merging two successive discounts at a time.

First Iteration:

Merging 5% and 10%:

D1=5+105×10100=150.5=14.5%D_1 = 5 + 10 - \frac{5 \times 10}{100} = 15 - 0.5 = 14.5\%

Second Iteration:

Merging 14.5% and 15%:

D2=14.5+1514.5×15100=29.52.175=27.325%

If we continue this iterative process for all 20 discounts, we get:

Dfinal=100%

Additional Method :

 Successive discount shortcut formula:

Dfinal=100×(1i=1n(1Di100))D_{\text{final}} = 100 \times \left(1 - \prod_{i=1}^{n} (1 - \frac{D_i}{100}) \right)

where DiD_i are the successive discounts.

**Identify the Given Data

  • Discounts: 5%, 10%, 15%, ..., 100% (20 terms)

  • Shortcut approach: Instead of calculating step-by-step, we calculate the final price factor:

Final Price Factor=(10.05)×(10.10)×(10.15)××(11.00)\text{Final Price Factor} = (1 - 0.05) \times (1 - 0.10) \times (1 - 0.15) \times \dots \times (1 - 1.00)

**Direct Calculation

Since the last discount is 100%, the price factor becomes zero because:

(11.00)=0(1 - 1.00) = 0

Thus, the final price is zero, meaning the equivalent single discount is 100%.

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