Question

A defective briefcase costing Rs. 800 is being sold at a loss of 8%. If the price is further reduced by 5%, then its selling price is
a. Rs. 850
b. Rs. 800
c. Rs. 750
d. Rs. 699.20

Answer 1

Hint: We will first find the selling price of the briefcase after a loss of 8% on Rs. 800 by using the formula, cost price $\times \left( \dfrac{100-loss\%}{100} \right)$. Then, we will find 5% of the selling price found out and then subtract it from that selling price to get the final selling price of the briefcase.

Complete step-by-step answer:
It is given in the question that a defective briefcase costing Rs. 800 is being sold at a loss of 8%. Also, the price is further reduced by 5% and we have been asked to find the selling price of the briefcase.
So, from the question, we get that the cost price of the briefcase is Rs. 800. The briefcase is sold at a loss of 8%. So, the selling price of briefcase = cost price $\times \left( \dfrac{100-loss\%}{100} \right)$. We know that loss percentage is 8% and the cost price is Rs. 800, so by substituting these values in the formula, we will get,
$\begin{align}
  & 800\times \left( \dfrac{100-8}{100} \right) \\
 & =800\times 0.92 \\
 & =Rs.736 \\
\end{align}$
Now, we know that the price of the briefcase was again reduced by 5%. So, the new selling price of the briefcase will be, Rs. 736 – 5% of Rs. 736, that is,
$\begin{align}
  & 736-\dfrac{5}{100}\times 736 \\
 & =736\left( 1-\dfrac{5}{100} \right) \\
 & =736\left( \dfrac{100-5}{100} \right) \\
 & =736\times 0.95 \\
 & =Rs.699.20 \\
\end{align}$
Therefore, the final selling price of the briefcase will be Rs. 699.20.
Thus, option (d) is the correct answer.

Note: The possible mistake that the students can make in this question is by taking 5% of Rs. 800 instead of 5% of Rs. 736 in the last step, which results in the wrong answer. Hence, it is recommended that the students read the question well and then solve the question in order to avoid any mistakes.