A shopkeeper plans to offer some successive discounts on the

[GMATinsight]

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

[Brent@GMATPrepNow]

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

[Scott@TargetTestPrep]

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