Question

A shopkeeper in a cycle shop increased the price of a cycle by $10\%$ and then gave a discount of $8\%.$ If the actual price of the cycle is $\$500,$ what is the final amount paid by the customer?

• A. $\$520$
• B. $\$510$
• C. $\$506$
• D. $\$500$

Answer 1

The correct option is C $\$506$

Given: The actual price of the cycle $=\$500$
The price of the cycle was increased by $10\%.$
So, the increment $=10\%$ of $500=\frac{10}{100}\times 500=50$
Therefore, the new price $=\$500+\$50=\$550.$
Again, he gave a discount of $8\%.$
So, the discount $=8\%$ of $550=\frac{8}{100}\times 550=44$
Therefore, the final price $=\$550-\$44=\$506$