Answer:
The single discount rate equavalent is a discount of 40%.
Step-by-step explanation:
The multiplier for a increase of a% is 1 + a/100.
The multiplier for a decrease of b% is 1 - b/100.
Discount of 20%:
20% decrease:
1 - (20/100) = 1 - 0.2 = 0.8
Discount of 25%:
1 - (25/100) = 1 - 0.25 = 0.75
Series of discounts(20% and 25%):
0.8*0.75 = 0.6
1 - 0.6 = 0.4
The single discount rate equavalent is a discount of 40%.
