Discount
- A retailer offers the following discount schemes for buyers on an article .
i. Two successive discounts of 10 % .
ii. A discount of 12 % followed by a discount of 8 %.
iii. Successive discount of 15 % and 5 % .
iv. A discount of 20 % .
The selling price will be minimum under the scheme
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i. Equivalent single discount to 10 % and 10 % = 10 + 10 - (10 x 10)/100 % = 19 %
ii. Equivalent single discount to 12 % and 8 % = 12 + 8 - (12 x 8)/100 = 20 - 0.96 = 19.04 %
iii. Equivalent single discount to 15 % and 5 % = 15 + 5 - (15 x 5)/100 = 20 - 0.75 = 19.25 %
iv. Equivalent single discount to 20 % = 20 %Correct Option: D
i. Equivalent single discount to 10 % and 10 % = 10 + 10 - (10 x 10)/100 % = 19 %
ii. Equivalent single discount to 12 % and 8 % = 12 + 8 - (12 x 8)/100 = 20 - 0.96 = 19.04 %
iii. Equivalent single discount to 15 % and 5 % = 15 + 5 - (15 x 5)/100 = 20 - 0.75 = 19.25 %
iv. Equivalent single discount to 20 % = 20 % So, the selling price will be minimum under the scheme iv as in this scheme, the discount is maximum .
- If a shopkeeper wants to give 20% discount on a toy, he has to sell it for Rs. 300. If he sells it at Rs. 405, then his gain percent is
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Let Marked price of toy = Rs. k
A discount of 20% is given.∴ 80k = 300 100 ⇒ k = 300 × 100 80
⇒ k = Rs. 375
Correct Option: C
Let Marked price of toy = Rs. k
A discount of 20% is given.∴ 80k = 300 100 ⇒ k = 300 × 100 80
⇒ k = Rs. 375∴ Profit percent = 
405 − 375 
× 100 = 8 % 375
- A has to pay $ 22 to B after 1 year. B asks A to pay $ 110 in cash and defers the payment of $ 110 for 2 years. A agrees to it. Counting the rate of interest at 10% per annum in this new mode of payment,
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A has to pay the P.W. of $ 220 due 1 year hence,
which isA pays = $ 
100 x 220 = $ 200 100 + (10 x 1)
A actually pays = $ [110 + P.W. of $ 110 due 2 years].= $ 110 + 100 x 110 = $ 192.66 100 + (8 x 2) Correct Option: B
A has to pay the P.W. of $ 220 due 1 year hence,
which isA pays = $ 100 x 220 = $ 200 100 + (10 x 1)
A actually pays = $ [110 + P.W. of $ 110 due 2 years].= $ 110 + 100 x 110 = $ 192.66 100 + (8 x 2)
∴ A gains = $ [200 - 192.66] = $ 7.34.
- What is the rate of interest when the P.W. of $ 1245 due in 15 months is $ 1200?
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Given :- Amount = $ 1245 , Present Worth = $ 1200 , Time = 15 months = ( 15/12 ) years
∴ True Discount = Amount - Present Worth
True Discount = $ 1245 - $ 1200 = $ 45
Present Worth ( P.W. ) = $ 1200∴ Rate of interest = True Discount × 100 % Present Worth × Time Correct Option: A
Given :- Amount = $ 1245 , Present Worth = $ 1200
∴ True Discount = Amount - Present Worth
True Discount = $ 1245 - $ 1200 = $ 45
Present Worth ( P.W. ) = $ 1200∴ Rate of interest = True Discount × 100 % Present Worth × Time Rate of interest = 45 x 100 = 3 % 1200 x 15/12
- What rate of interest does a man get for his money when in discounting a bill due in 10 months, he deducts 4 % of the amount of the bill?
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Let the amount of the bill be $ 100.
Money deducted = $ 4
Money received by holder of the bill = $ (100 - 4) = $ 96
S.I. on $ 96 for 10 months = $ 4∴ Rate of interest = Banker 's discount × 100 % Amount × Time Correct Option: A
Let the amount of the bill be $ 100.
Money deducted = $ 4
Money received by holder of the bill = $ (100 - 4) = $ 96
S.I. on $ 96 for 10 months = $ 4∴ Rate of interest = Banker 's discount × 100 % Amount × Time Rate = 100 x 4 x 6 = 5 % 96 x 5
