Find the net cost equivalent and the percent form of the single discount equivalent for the following series discount.
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A)0.6; 40%
B)0.4; 60%
C)0.51; 49%
D)0.49; 51%

Question

Find the net cost equivalent and the percent form of the single discount equivalent for the following series discount.
-
A)0.6; 40% 
B)0.4; 60% 
C)0.51; 49% 
D)0.49; 51%

Quizplus · Accepted Answer

To find the single discount equivalent, we need to find the equivalent discount that would give us the same net cost as the series discount:
Net cost equivalent = 1 - (1-0.1)^2 = 0.19
To find the percent form of the single discount equivalent, we need to convert the decimal to a percent: 
0.19 = 19%
Therefore, the single discount equivalent is a 19% discount. 
To check if the answer choices are correct, we can convert the single discount equivalent back to a net cost equivalent:
Net cost equivalent = 1 - 0.51 = 0.49
This matches answer choice D, so the best choice is D.

Find the Net Cost Equivalent and the Percent Form of the Single