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Question

Rahul went to purchage a Nokia mobile handset. The shopkeeper told him to pay 20% tax if he asked for the bill. Rahul manages to get the discount of 5% on the actual sale price of the mobile and he paid the shopkeeper Rs 3325 without tax. Besides he manages to avoid to pay 20% tax on the already discounted price. What is the amount of discount that he has got?

A
Rs 650
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B
Rs 375
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C
Rs 875
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D
Rs 525
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Solution

The correct option is C Rs 875
Let cost price =100 Rs Then selling price with tax =100+20=120
New S.P =100-5=95 Rs
So effective discount =120-95=25 Rs
So at S. P of 95 is discount=25%
And at S.P of 3325 -discount =2595×3325=875Rs

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