Successive discounts of 20% and 15% equal what single discount__________?
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Answer: C. 32%
Explanation
Applying a 20 percent discount leaves a remaining price factor equal to eighty percent of the original. Applying an additional 15 percent discount to that remainder multiplies it by eighty-five percent. Subtracting the final combined price factor from one reveals an equivalent single net discount of 32 percent. Successive percentage discounts are calculated by multiplying the successive remaining price multipliers together. A discount percentage represents the fraction of the original price that is subtracted during a sale. Combining percentage discounts directly by addition always overestimates the true cumulative markdown value.
Retail stores frequently advertise successive promotional discounts to attract customers while protecting profit margins. Consumer finance calculations require understanding successive price reductions during clearance sales events. This mathematical concept applies whenever multiple percentage reductions or compounding losses occur sequentially. Option A incorrectly adds the two discount percentages together without accounting for compounding price effects. Option B represents a calculation error in multiplying the successive decimal remaining price factors. Option D underestimates the true combined discount by improperly applying the secondary markdown rate.
- Subject
- Mathematics
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- Mathematics
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