A discount of 20 percent on an order of goods

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BTGmoderatorLU: Moderator; Posts: 2544; Joined: Sun Oct 15, 2017 1:50 pmFollowed by: 6 members

by BTGmoderatorLU » Fri May 04, 2018 2:07 pm

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A discount of 20 percent on an order good followed by a discount of 20 percent amounts to

A. The same as one 45 percent discount
B. The same as one 40 percent discount
C. The same as one 36 percent discount
D. The same as one 30 percent discount
E. The same as one 25 percent discount

The OA is C.

I'm confused with this PS question, can anyone help me to solve it, please? Thanks in advance!

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Source: Beat The GMAT — Problem Solving | Fri May 04, 2018 2:07 pm

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Brent@GMATPrepNow: GMAT Instructor; Posts: 16207; Joined: Mon Dec 08, 2008 6:26 pmFollowed by: 1268 members; Location: Vancouver, BC; Thanked: 5254 times; GMAT Score:770

by Brent@GMATPrepNow » Fri May 04, 2018 2:46 pm

BTGmoderatorLU wrote:A discount of 20 percent on an order good followed by a discount of 20 percent amounts to

A. The same as one 45 percent discount
B. The same as one 40 percent discount
C. The same as one 36 percent discount
D. The same as one 30 percent discount
E. The same as one 25 percent discount

Let's start with a nice number

Let $100 be the ORIGINAL price.
So, a 20% discount on $100 = $20, which means the discounted price = $100 - $20 = $80

Next, a 20% discount on $80 = $16, which means the NEW discounted price = $80- $16 = $64

So, if the ORIGINAL price = $100, the DOUBLE DISCOUNTED price = $64
In other words, the DOUBLE DISCOUNTED price is $36 less than the ORIGINAL PRICE

This represents an overall discount of 36%

Answer: C

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com

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swerve: Legendary Member; Posts: 2535; Joined: Sun Oct 29, 2017 2:04 pmFollowed by: 6 members

by swerve » Sat May 05, 2018 7:49 am

Say initial order = 100

Discount 20% = 20

Value = 100 - 20 = 80

Again discount 20% = 80*(20/100) = 16

Value = 80 - 16 = 64

Total discount = 20 + 16 = 36%.

Regards!

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8137; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

by Scott@TargetTestPrep » Sun May 13, 2018 5:07 pm

BTGmoderatorLU wrote:A discount of 20 percent on an order good followed by a discount of 20 percent amounts to

A. The same as one 45 percent discount
B. The same as one 40 percent discount
C. The same as one 36 percent discount
D. The same as one 30 percent discount
E. The same as one 25 percent discount

Two 20 percent discounts is 0.8 x 0.8 = 0.64, which is the same as a 36 percent discount.

Answer: C

Scott Woodbury-Stewart
Founder and CEO
[email protected]

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

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