The difference of 40% discount on Rs. 500 and successive discounts of 36% and 4% on Rs. 500 is

Given:

Original Price = ₹500

Single Discount = 40%

Successive Discounts = 36% and 4%

Formula used:

Single Discount Price = Original Price × (1 - Discount/100)

Successive Discount Price = Original Price × (1 - First Discount/100) × (1 - Second Discount/100)

Difference = Single Discount Price - Successive Discount Price

Calculation:

Single Discount Price = 500 × (1 - 40/100)

⇒ Single Discount Price = 500 × 0.6 = ₹300

Successive Discount Price = 500 × (1 - 36/100) × (1 - 4/100)

⇒ Successive Discount Price = 500 × 0.64 × 0.96

⇒ Successive Discount Price = ₹307.20

Difference = ₹300 - ₹307.20

⇒ Difference = ₹7.20

∴ The correct answer is option (2).