Question

A fan is listed at Rs.1500 and a discount of 20% is offered on the list price. What must an additional discount be offered to the customer to bring the net price to Rs.1104?
(a) 8%
(b) 10%
(c) 12%
(d) 15%

Answer 1

Hint: Find the selling price of the fan for a discount of 20%. Subtract the SP and the net price to get the additional discount. Now find the additional discount rate which is the additional discount by SP.

Complete step by step solution:
The listed price of the fan = Rs.1500
It is said that a discount of 20% is offered on the list price of the fan. Thus the selling price of the fan will be (100 - 20)% of the listed price of the fan.
\[\therefore \] The selling price of the fan = 80% of the listed price of the fan.
 \[\therefore \] The selling price of the fan = 80% \[\times \] 1500.
\[\therefore \] The selling price of the fan = \[\dfrac{80}{100}\times 1500\] = Rs.1200.
Now we are told that the net price for which the fan is sold is Rs.1104.
\[\therefore \] The final selling price of the fan = Rs.1104.
Hence the additional discount offered to the customer = selling price of fan – final selling price of the fan.
The additional discount offered to the customer = Rs.1200 – Rs.1104 = Rs.96.
Thus Rs.96 is the additional discount offered to the customer.
\[\therefore \] Additional discount rate = (additional discount / selling price) \[\times \] 100
\[\therefore \] Additional discount rate = \[\dfrac{96}{1200}\times 100=\dfrac{96}{12}=8\]%.
\[\therefore \] The additional discount rate offered to customers is 8%.
\[\therefore \] Option (a) is the correct answer.

Note: You can also calculate the selling price by,
Discount offered = 20%.
\[\therefore \] Discount rate = 20% of the listed price of the fan = \[\dfrac{20}{100}\times 1500\] = Rs.300.
\[\therefore \] Selling price of fan = listed price of fan – discount rate = 1500 – 300 = Rs.1200.