Question

Which discount series is profitable to the buyer \[25\% \], \[12\% \], \[3\% \], or \[18\% \], \[1.7\% \], \[5\% \]?
A) First
B) Second
C) Both
D) Neither

Answer 1

Hint: Here, we will first add the terms of the first discount series to find the first total discount and then we will add the terms of the second discount series to find the second total discount. Then we will compare both the sums and whichever is greater is the most profitable to the buyer.

Complete step by step solution: We are given that the first discount series is \[25\% \], \[12\% \], \[3\% \], and the second discount series \[18\% \], \[1.7\% \], \[5\% \].

 We know that the discount series will be better as the total discount, which a customer will get is more.

Adding the terms of the first discount series to find the first total discount, we get
\[
   \Rightarrow {\text{First Total Discount}} = 25\% + 12\% + 3\% \\
   \Rightarrow {\text{First Total Discount}} = 40\% \\
 \]

Adding the terms of the second discount series to find the second total discount, we get
\[
   \Rightarrow {\text{Second Total Discount}} = 18\% + 1.7\% + 5\% \\
   \Rightarrow {\text{Second Total Discount}} = 24.7\% \\
 \]

Since \[40\% > 24.7\% \], the first total discount is greater than the second total discount.

Thus, the first discount series is better.

Hence, option A is correct.

Note: Note: We need to know that the discount is the condition of the price of a bond that is lower than the face value. So the discount is the difference between the price paid for and it’s per-value. Students should know that whichever total discount is greater than the other, the buyer will have more profited with that series.