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Your question implies that the discounts are applied sequentially, that is the first is applied and then the second is applied to the reduced amount.:

To work out the single equivalent discount, you need to work using the value after discount all the way through.

A 15% discount can be calculated by working out 15% of the value and subtracting it, but this is also the equivalent of working out 100% - 15% of the original value, that is 85%.

Similarly for the 20%, that is working out 100% - 20% = 80% of the original value.

So the final value after both discounts is 80% of 85% of the original value which is 80% x 85% = 68% and represents a discount of 100% - 68% = 32%.

Thus the discounts of 20% and 15% applied sequentially is equivalent to a single discount of 32%.

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