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A discount of 20 percent on an order of goods

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A discount of 20 percent on an order of goods

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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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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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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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

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