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HomeCATquantitativeaptitudeProfit and Loss › A mall offers '25% off + extra 20% off'. What is…

A mall offers '25% off + extra 20% off'. What is the single discount equivalent?

A$45\%$
B$40\%$
C$50\%$
D$35\%$
Answer & Solution
Correct answer: B. $40\%$
Net = 0.75 × 0.80 = 0.60. Effective discount = 1 − 0.60 = 40%. Adding 25 + 20 = 45 is the trap.
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