What single rate of discount would be equivalent to a series of 25%/ 18%/ 10%?

Question

Quizplus · Accepted Answer

To find the single equivalent discount rate for a series of discounts, we can use the formula for successive discounts: $1 - (1 - d_1)(1 - d_2)(1 - d_3)$, where $d_1, d_2, d_3$ are the decimal forms of the discounts. For 25%, 18%, and 10%, the calculation is $1 - (1 - 0.25)(1 - 0.18)(1 - 0.10) = 1 - (0.75)(0.82)(0.90) = 1 - 0.553 = 0.447$ or 44.7%.

What Single Rate of Discount Would Be Equivalent to a Series