Question

Given a series discount of 25/25 what is the net cost equivalent?

Answer 1

We need to find the net cost equivalent after two consecutive discounts of 25%.

After the first discount, the percentage of the list price the client should pay is given by:

`100\%-25\%=75\%`

After the second discount, the percentage of the list price the client should pay is:

`\begin{gathered} 75\%\cdot(100\%-25\%) \\ \\ =75\%\cdot75\% \\ \\ =(75)/(100)\cdot(75)/(100) \\ \\ =(5625)/(100)\cdot(1)/(100) \\ \\ =56.25\% \end{gathered}`

Therefore, the net cost equivalent is 56.25%.