Cost Price=C.P.=Rs. 40,000
1st set of successive discounts=20%, 20%, 10%
2nd set of Successive discounts=40%, 5%, 5%
S.P. of 1st set=80% of 80% of 90% of Rs.40,000=Rs. 23,040
S.P. of 2nd set=60% of 95% of 95% of Rs. 40000=Rs. 21660
Therefore,
The 2nd offer is better,
Customer can save (Rs.23040-Rs.21660)=Rs1380
Ans is Rs. 1380