Two shopkeepers A and B sell a certain kind of machine at the same list price. Shopkeeper A allows two successive discounts of 20 percent and 15 percent, while shopkeeper B allows two successive discounts of 10 percent and 25 percent. Which of the following statements is correct?
AA offers more discount
BB offers more discount ✓ Correct
CBoth A and B offer the same discount
DA offers 35 percent discount and B offers 30 percent discount
Correct answer: (B) B offers more discount
Explanation
Shopkeeper B gives the larger discount.
A's net factor = 0.80 x 0.85 = 0.68, a 32% discount.
B's net factor = 0.90 x 0.75 = 0.675, a 32.5% discount.
32.5% is greater than 32%.
So B allows more discount.
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