For the last 12 years, Oscar has been receiving a 25/10/5 series discounts. Find the equivalent single discount rate

Question

For the last 12 years, Oscar has been receiving a 25/10/5 series discounts. Find the equivalent single discount rate

Answer 1

For easy calculation we assume the original price is 100. The net price = 100 * (1-0.25) * (1-0.1) * (1-0.05) =64.125

 

The equivalent single discount rate is (100-64.125)/100 = 0.35875 = 35.875%