Question

A whole seller allows 25% trade discount and 5% cash discount. What will be the net price of an article marked at ₹ 1,600?

Answer 1

The article is marked at ₹ 1,600 i.e. its list price is ₹ 1,600.

Wholesaler allows 25% trade discount.

∴ Trade discount = 25% of List price

= 25% of ₹ 1,600

`= 25/100 xx 1600` = ₹ 400

Invoice Price = List price – Trade discount

= 1,600 – 400 = ₹ 1,200

Also, the wholesaler allows 5% cash discount

∴ Cash discount = 5% of invoice price

= 5% of ₹ 1,200

`= 5/100 xx 1200` = ₹ 60

∵ Net price = Invoice price – Cash discount

= 1,200 - 60

∴ Net price = ₹ 1,140

∴ Net price of the article is ₹ 1,140.