Question

A table is offered for Rs. 1000 with 20% and 10% off. If in addition, a discount of 10% is offered on cash payment, then the cash price of the table is:
1. Rs. 648
2. Rs. 600
3. Rs. 504
4. Rs. 650

Answer 1

Correct Answer - Option 1 : Rs. 648

Given:

Offer price = Rs. 1000 

Discounts = 20%, 10%

Additional discount = 10%

Concept used:

The cash price of the table is the actual amount of money that is exchanged when the table is bought and sold.

The offer price is the price at which the maker is prepared to sell a table.

Formula used:

Cash price = [(100 - Discount %)/100] × Offer price

Calculation:

According to the question,

Cash price = [(100 - 20)/100 × (100 - 10)/100 × (100 - 10)/100] × 1000

⇒ [(80)/100 × (90)/100 × (90)/100] × 1000

⇒ 648

∴ The cash price of the table is Rs. 648.