A customer could not decide between a discount of 40% or two successive discounts of 25% and 15% to buy a certain article. What is the difference between both the discounts?

Given:

A customer is comparing a single discount of 40% with two successive discounts of 25% and 15%.

Formula used:

Single discount: D₁ = 40%

Successive discounts: D₂ = 25% and 15%

Effective Discount for successive discounts: D_eff = D_2a + D_2b - (D_2a × D_2b)

Where, D_2a = 25% and D_2b = 15%

Calculation:

Effective discount for successive discounts:

D_eff = 25% + 15% - (25% × 15%)

⇒ D_eff = 0.25 + 0.15 - (0.25 × 0.15)

⇒ D_eff = 0.25 + 0.15 - 0.0375

⇒ D_eff = 0.3625 or 36.25%

Difference between the single discount and the effective successive discount:

Difference = 40% - 36.25%

⇒ Difference = 3.75%

∴ The correct answer is option (2).