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09 Feb 2026, 20:00
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
67% (01:09) correct
33%
(01:12)
wrong
based on 177
sessions
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Three successive discounts of 20% each are equivalent to one discount of what value?
A. 40%
B. 44%
C. 48.8%
D. 51.2%
E. 60%
A. 40%
B. 44%
C. 48.8%
D. 51.2%
E. 60%
09 Feb 2026, 23:02
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ExpertsGlobal5
This problem can be solved in multiple ways,
Method 1: Ratio method.
20% is expressed as 1/5.
Three successive discounts means:
5 ————- 4
5 ————- 4
5 ————- 4
125 ————- 64.
= (125-64)/125
= (61/125) *100
= 48.8%
Method 2:
Successive discount = a + b + (ab/100)
With successive discount of 20%, we get
-20 -20 + (20*20)/100 = -40+4 = -36
again repeat the step with -36 and -20
-36-20 +( 36*20)/100
-56+7.2
-48.8
Method 3:
100 * (4/5)*(4/5)*(4/5) = 256/5 = 51.2
Therefore, the discount is 100 - 51.2 = 48.8%
Option C
10 Feb 2026, 03:38
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Nice work by Dereno! Here's one more way to think about this that I found really fast during my prep — the multiplier method.
The idea: A 20% discount means you pay 80% of the price, so the multiplier is 0.8.
Three successive 20% discounts means: Final price = Original × 0.8 × 0.8 × 0.8 = Original × 0.512
So you're paying 51.2% of the original price, which means the single equivalent discount is: 100% − 51.2% = 48.8%
Answer: C
The trap answer is 60% (choice E) — students who add 20 + 20 + 20 and don't understand that successive discounts compound, not add. Each discount applies to the already-reduced price, not the original.
Another trap is 44% (choice B), which comes from incorrectly applying the successive discount formula for only two discounts.
Takeaway: For any successive percentage change problem on the GMAT, convert to multipliers (e.g., 20% increase = 1.2, 20% decrease = 0.8), chain-multiply, then convert back. It's the fastest and least error-prone approach.
The idea: A 20% discount means you pay 80% of the price, so the multiplier is 0.8.
Three successive 20% discounts means: Final price = Original × 0.8 × 0.8 × 0.8 = Original × 0.512
So you're paying 51.2% of the original price, which means the single equivalent discount is: 100% − 51.2% = 48.8%
Answer: C
The trap answer is 60% (choice E) — students who add 20 + 20 + 20 and don't understand that successive discounts compound, not add. Each discount applies to the already-reduced price, not the original.
Another trap is 44% (choice B), which comes from incorrectly applying the successive discount formula for only two discounts.
Takeaway: For any successive percentage change problem on the GMAT, convert to multipliers (e.g., 20% increase = 1.2, 20% decrease = 0.8), chain-multiply, then convert back. It's the fastest and least error-prone approach.
