A wholesaler offers a discount of 10% on a commodity, marked at ₹3,000, on an order of less than 20 items. Also, on an order of more than 20 items, an additional discount of 5% is offered on the commodity. What amount does a retailer have to pay to purchase 25 items of the commodity whose marked price is ₹3,000?
- AOption (a)
₹25,650
- BOption (b)
₹64,125
- COption (c)
₹72,543
- DOption (d)
₹26,125
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Correct answer
₹64,125
Why this answer is correct
Shortcut Trick
Total Marked Price = 25 × 3,000 = ₹75,000
Successive Discount % = 10 + 5 − (10 × 5) ÷ 100 = 14.5%
Net Multiplier = 100% − 14.5% = 85.5% = 0.855
Final Amount = 75,000 × 0.855 = ₹64,125
∴ The correct answer is ₹64,125.
Alternate Method
Given:
Marked Price (MP) per item = ₹3,000
Quantity = 25 items (More than 20 items)
Discounts = 10% (primary) and an additional 5% (successive)
Calculations:
⇒ Total MP = 25 × 3,000 = ₹75,000
⇒ Since quantity is 25 (which is > 20), both 10% and 5% discounts apply.
⇒ Price after 10% Discount = 75,000 − (10% of 75,000)
⇒ Price after 10% Discount = 75,000 − 7,500 = ₹67,500
⇒ Price after Additional 5% Discount = 67,500 − (5% of 67,500)
⇒ Final Amount = 67,500 − 3,375
⇒ Final Amount = ₹64,125
∴ The correct answer is ₹64,125.
Additional Information
Successive Discount Formula
When two discounts d1 and d2 are applied successively, the single equivalent discount is calculated as (d1 + d2 − (d1 × d2) ÷ 100)%.
Net Selling Price Formula
SP = MP × (100 − d1)/100 × (100 − d2)/100. This is useful for calculating the final price directly after multiple discounts.
Marked Price vs. Selling Price
Marked Price is the price printed on the item, while Selling Price is the final amount paid after deducting all applicable discounts from the MP.