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Question

A company allowed successive discounts of 20%, 5% and 212% on its watches, if the μp of watches purchased was Rs. 75,000, find the net SD.

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Solution

4MP=Rs.75000
For 20% discount,
(SP)1=80%×Rs.75,000=Rs.60,000
For further 5% discount,
(SP)2=95%×Rs.60,000=Rs.57,000
For further 2.5% discount,
(SP)3=97.5%×Rs.60,000=Rs.55,575
Net SD=Rs.75,000Rs.55575=Rs.19425

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