A bakery called Cakely is offering  a 30% + 20% discount on all cakes - Tricky Percentages

part 2 - Example 12 - Tricky Percentages - Chapter 1 Class 8 - Fractions in Disguise (Ganita Prakash II) - Class 8 (Ganita Prakash - 1, 2 & Old NCERT)

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Example 12 A bakery called Cakely is offering a 30% + 20% discount on all cakes. Another bakery called Cakify is offering a 50% discount on all cakes. Would you rather choose Cakely or Cakify if you want the cheaper cost?Stores love the " ๐Ÿ‘๐ŸŽ%+๐Ÿ๐ŸŽ% " trick because your brain immediately adds them together to make 50%. But percentages don't work like that! Let's test it on a โ‚น200 cake. Cakely (Successive Discounts = 30% + 20%) First, take ๐Ÿ‘๐ŸŽ% off โ‚น200. (30% of 200 is โ‚น60). Price drops to โ‚น140. Next, take 20% off the new price of โ‚น140. (20% of 140 is โ‚น28). Final Price = 140โˆ’28= โ‚น112 Cakify (Flat Discount = 50%): Take a straight 50% off โ‚น 200 . (Half price!). Final Price = โ‚น100. Answer: Cakify is cheaper. With consecutive discounts, the second discount is applied to a smaller number, so it saves you less actual money.

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 16 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.