As a strategy towards retention of customers, the service centre

As a strategy towards retention of customers, the service centre of a split AC machine manufacturer offers discount as per the following rule: for the second service in a year, the customer can avail of a 10% discount; for the third and fourth servicing within a year, the customer can avail of 11% and 12% discounts respectively of the previous amount paid, Finally, if a customer gets more than four services within a year, he has to pay just 55% of the original servicing charges. If Rohan has availed 5 services from the same service centre in a given year, the total percentage discount availed by him is approximately

  1. 16.52
  2. 20.88
  3. 22.33
  4. 24.08

Solution

Let original service charges be Rs. 1000

For second service, charges = Rs. 900

For third service, charges = Rs. 801

For fourth service, charges = Rs. 705

For fifth service, charges = Rs. 550

Total payment made for five services = Rs. 3956

Discount availed = Rs.5000 - Rs.3956 = Rs. 1044

Percentage discount = 1044/5000 = 20.88%

The correct option is B.