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:

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

Therefore, the net cost equivalent is 56.25%.