A trader gives successive discounts of 10%, 20% and 10% respectively. The percentage of the original cost price he will recover is:
Question
Solution
To solve this problem, we need to understand that successive discounts are not additive, but multiplicative. Here's how to calculate it:
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Start with the original price as 100%.
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The first discount is 10%, so the price becomes 90% of the original (100% - 10% = 90%).
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The second discount is 20% of the new price. To find this, multiply 90% by 80% (because 100% - 20% = 80%). This gives 72% of the original price.
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The third discount is 10% of the new price. To find this, multiply 72% by 90% (because 100% - 10% = 90%). This gives 64.8% of the original price.
So, the trader will recover 64.8% of the original cost price after giving the successive discounts.
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