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Question

A watch dealer sells watches at Rs 600 per watch. However, he is forced to give two successive discounts of 10% and 5% respectively. However, he recovers the sales tax on the net sale price from the customer at 5% of the net price. What price does a customer have to pay him to buy the watch?

A
Rs 539.75
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B
Rs 539.65
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C
Rs 538.75
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D
Rs 538.65
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Solution

The correct option is D Rs 538.65
600 - 10% of 600 = 540.
540 - 5% of 540 = 513.
513 + 5% of 513 = 538.65

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