A shopkeeper offers a trade discount of 15% on the marked price of an item. If the marked price of this product is ₹6500, what is its selling price (in ₹)?
- AOption (a)
5200
- BOption (b)
5525
- COption (c)
5255
- DOption (d)
5552
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Correct answer
5525
Why this answer is correct
Shortcut Trick
Since the discount is 15%, the Selling Price (SP) will be (100 − 15)% = 85% of the Marked Price.
SP = 85% of &inr;6500
SP = (85 ÷ 100) × 6500
SP = 85 × 65 = &inr;5525
∴ The correct answer is &inr;5525.
Alternate Method
Given:
Marked Price (MP) = &inr;6500
Trade Discount = 15%
Formula Used:
Discount = (Discount % ÷ 100) × MP
Selling Price (SP) = MP − Discount
MP: &inr;6500 Discount: 15% −&inr;975 SP: &inr;5525 Selling Price = MP − Discount
Calculations:
⇒ Discount = (15 ÷ 100) × 6500
⇒ Discount = 15 × 65 = &inr;975
⇒ Selling Price (SP) = 6500 − 975
⇒ SP = &inr;5525
∴ The correct answer is &inr;5525.
Additional Information
Marked Price (MP)
It is the price printed on the label of an article. Any trade discount or promotional discount is always calculated strictly on the Marked Price.
Successive Discounts
If two successive discounts of a% and b% are offered, the equivalent single discount can be calculated directly using the formula: (a + b − ab ÷ 100)%.
Profit and Loss Baseline
While discounts are calculated on Marked Price, the Profit or Loss percentage is always calculated on the Cost Price (CP) unless specifically mentioned otherwise.