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
A shopkeeper plans to offer some successive discounts on the
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Let the original price = $100GMATinsight 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%
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
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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:GMATinsight wrote: ↑Sun May 21, 2017 4:21 amA 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
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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