Explanation:

Let’s break it down:

- A straight 40% discount on ?50,000 knocks off 40%, so:

?50,000 × 40% = ?20,000

Sale price = ?50,000 - ?20,000 = ?30,000

- Now, two successive discounts of 36% and then 4%:

First, 36% off:

?50,000 × 36% = ?18,000

New price = ?50,000 - ?18,000 = ?32,000

Then, 4% off that:

?32,000 × 4% = ?1,280

Final sale price = ?32,000 - ?1,280 = ?30,720

- The difference between single discount and successive discounts:

?30,720 - ?30,000 = ?720

So going through all the options:

1. Rs.875 – Not correct

2. Rs.1,440 – Nope

3. Rs.1,250 – Also wrong

4. Rs.720 – That’s it.