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A company offers four types of successive discounts I - IV on the marked price of an article. Arrange these successive discounts I - IV in ascending order based on the final price of the article…

Question and options

A company offers four types of successive discounts I - IV on the marked price of an article. Arrange these successive discounts I - IV in ascending order based on the final price of the article after discounts.

(I) 25%25 \% and 15%15 \%
(II) 30%30 \% and 10%10 \%
(III) 35%35 \% and 5%5 \%
(IV) 15%15 \% and 20%20 \%
  1. (I) < (II) < (IV) < (III)
  2. (III) < (II) < (I) < (IV)
  3. (II) < (I) < (IV) < (III)
  4. (III) < (I) < (II) < (IV)

Answer and explanation

Correct answer: B - (III) < (II) < (I) < (IV)
Final price as a fraction of marked price: I = 0.75 x 0.85 = 0.6375; II = 0.70 x 0.90 = 0.63; III = 0.65 x 0.95 = 0.6175; IV = 0.85 x 0.80 = 0.68. Ascending order of final price is therefore III, II, I, IV.

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