A product priced at INR 500 gets a 20% discount then a 5% tax on the discounted price. What is the final price?
- AOption (a)
INR 430
- BOption (b)
INR 435
- COption (c)
INR 425
- DOption (d)
INR 420
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Correct answer
INR 420
Why this answer is correct
Given:
Product's original price = INR 500
Discount = 20%
Tax on the discounted price = 5%
Product's price after discount = Product's original price × (1 - Discount)
= 500 × (1 - 20/100)
= 500 × (1 - 1/5)
= 500 × 4/5
= INR 400
Product's price after tax = Product's price after discount × (1 + Tax)
= 400 × (1 + 5/100)
= 400 × (1 + 1/20)
= 400 × (21/20)
= INR 420
Thus, final price is INR 420.
Hence, "Option 4" is the correct answer.