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) and
(II) and
(III) and
(IV) and
(I) and
(II) and
(III) and
(IV) and
- (I) < (II) < (IV) < (III)
- (III) < (II) < (I) < (IV)
- (II) < (I) < (IV) < (III)
- (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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