A discount of 20 percent on an order of goods followed

Hi MY7MBA,

We're told that a discount of 20 percent on an order of goods is followed by a discount of 20 percent. We're asked for the total percent discount on the original order. This question can be solved by TESTing VALUES.

IF... the original order costs $100
the first 20% discount = $100 - (.2)($100) = $80 total cost
the second 20% discount = $80 - (.2)($80) = $64 total cost

The original cost of $100 becomes a total cost of $64 after the two discounts are applied. This is the equivalent of a (100 - 64)/100 = 36% decrease in price.

Final Answer: C

GMAT assassins aren't born, they're made,
Rich