What single discount rate is equivalent to multiple discounts of 20%, 5%, 2%?
A) 25.52%
B) 27%
C) 63%
D) 74.48%
E) 23.97%

Name: What single discount rate is equivalent to multiple discounts of 20%, 5%, 2%? A) 25.52% B) 27% C) 63% D) 74.48% E) 23.97%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The equivalent single discount rate can be calculated by multiplying the complements of the given discounts and subtracting from 1: (1 - 0.20) * (1 - 0.05) * (1 - 0.02) = 0.7488. The equivalent discount is 1 - 0.7488 = 0.2512 or 25.12%.

What Single Discount Rate Is Equivalent to Multiple Discounts of 20