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