A shopkeeper plans to offer some successive discounts on the

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GMATinsight: Legendary Member; Posts: 1100; Joined: Sat May 10, 2014 11:34 pmFollowed by: 24 members; Location: New Delhi, India; Thanked: 205 times

by GMATinsight » Sun May 21, 2017 4:21 am

A shopkeeper plans to offer some successive discounts on the items he is selling and lists the five options. Which of the following discount scheme options would be best suited for him if he wants to offer least discount in absolute terms?

A) 20% 20% 10%
B) 30% 20%
C) 10% 30% 10%
D) 10% 40%
E) 50%

Source: www.GMATinsight.com

Answer: option E

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Source: Beat The GMAT — Problem Solving | Sun May 21, 2017 4:21 am

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by Brent@GMATPrepNow » Sun May 21, 2017 5:05 am

GMATinsight wrote:A shopkeeper plans to offer some successive discounts on the items he is selling and lists the five options. Which of the following discount scheme options would be best suited for him if he wants to offer least discount in absolute terms?

A) 20% 20% 10%
B) 30% 20%
C) 10% 30% 10%
D) 10% 40%
E) 50%

Let the original price = $100

A) 20% 20% 10%
So, the discounted price = ($100)(0.8)(0.8)(0.9) = $57.60

B) 30% 20%
So, the discounted price = ($100)(0.7)(0.8) = $56.00

C) 10% 30% 10%
So, the discounted price = ($100)(0.9)(0.7)(0.9) = $56.70

D) 10% 40%
So, the discounted price = ($100)(0.9)(0.4) = $54.00

E) 50%
So, the discounted price = ($100)(0.5) = $50.00

Which of the following discount scheme options would be best suited for him if he wants to offer least discount in absolute terms?

Answer choice E (which is listed as the correct answer) represents as $50 discount.
Answer choice A represents as $42.40 discount.

Answer: A

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8156; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

Re: A shopkeeper plans to offer some successive discounts on the

by Scott@TargetTestPrep » Sun Mar 29, 2020 4:26 am

GMATinsight wrote: ↑
Sun May 21, 2017 4:21 am
A shopkeeper plans to offer some successive discounts on the items he is selling and lists the five options. Which of the following discount scheme options would be best suited for him if he wants to offer least discount in absolute terms?

A) 20% 20% 10%
B) 30% 20%
C) 10% 30% 10%
D) 10% 40%
E) 50%

Source: www.GMATinsight.com

Answer: option E

We can let the original price (i.e., the price before any discounts) be 100. Now let’s determine the final discounted price for each of the given options:

A. 100 x 0.8 x 0.8 x 0.9 = 57.6

B. 100 x 0.7 x 0.8 = 56

C. 100 x 0.9 x 0.7 x 0.9 = 56.7

D. 100 x 0.9 x 0.6 = 0.54

E. 100 x 0.5 = 50

We see that option A offers the smallest discount in absolute terms.

Answer: A

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