Two consecutive discounts of 10% and 20% are equal to a single discount of:
A) 30%
B) 28%
C) 18%
D) 25%
E) 15%
IMAT 2024 · Question 7
Q7 - Problem solving
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The correct answer is B) 28%.
Discounts in a row multiply, they don't add. After 10% off you pay 0.9 of the price, and after another 20% off you pay 0.8 of that:
0.9 × 0.8 = 0.72, so you pay 72% of the original, which is a 28% discount.
With numbers: €100 → €90 → €72. The 30% answer forgets that the second discount is applied to an already reduced price.
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