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A trader gives successive discounts of 10%, 20% and 10% respectively. The percentage of the original cost price he will recover is:

Question

A trader gives successive discounts of 10%, 20% and 10% respectively. The percentage of the original cost price he will recover is:

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Solution 1

To solve this problem, we need to understand that successive discounts are not additive, but multiplicative. Here's how to calculate it:

  1. Start with the original price as 100%.

  2. The first discount is 10%, so the price becomes 90% of the original (100% - 10% = 90%).

  3. 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.

  4. 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.

This problem has been solved

Solution 2

To solve this problem, we need to understand that successive discounts are not additive. This means that we can't simply add the discounts together to get a total discount of 40%. Instead, we need to apply each discount one at a time.

Let's assume the original cost price of the item is $100 (you can choose any value, the percentage will remain the same).

  1. The first discount is 10%. So, the price after the first discount is 100 - 10% of 100 = $90.

  2. The second discount is 20%. So, the price after the second discount is 90 - 20% of 90 = $72.

  3. The third discount is 10%. So, the price after the third discount is 72 - 10% of 72 = $64.8.

So, the trader will recover 64.8% of the original cost price after giving the successive discounts.

This problem has been solved

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