A cash payment that will settle a bill for 625 pairs of boots at ₹94 per pair of boots with successive discounts of 20% and 7% with a further discount of 20% on cash payment is:
- AOption (a)
₹34,992
- BOption (b)
₹34,968
- COption (c)
₹34,972
- DOption (d)
₹34,963
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Correct answer
₹34,968
Why this answer is correct
Shortcut Trick
Total List Price = 625 × 94 = 58,750.
Net Multiplier = (80 ÷ 100) × (93 ÷ 100) × (80 ÷ 100) = 0.8 × 0.93 × 0.8 = 0.5952.
Cash Payment = 58,750 × 0.5952 = 34,968.
∴ The correct answer is ₹34,968.
Alternate Method
Given: Quantity = 625, Rate = ₹94, Discounts = 20%, 7%, 20%.
Formulas: Total Value = Quantity × Rate | SP = MP × (100 − D1)% × (100 − D2)% × (100 − D3)%
⇒ Total List Price = 625 × 94 = ₹58,750.
⇒ After 20% discount = 58,750 × 0.80 = 47,000.
⇒ After 7% discount = 47,000 × 0.93 = 43,710.
⇒ Final Cash Payment (after 20% further discount) = 43,710 × 0.80 = ₹34,968.
∴ The correct answer is ₹34,968.
Additional Information
Successive Discounts
When multiple discounts are applied one after another, the net selling price is calculated on the reducing balance at each step.
Cash Discount
A cash discount is an incentive offered by a seller to a buyer in return for paying a bill before the scheduled due date.